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Q. Consider a water project in a region which supplies water to both industrial also agricultural uses. Their demand functions for water are particularly:Qind = 6 - PQag = 12 - P
The water project has a capacity limit of S = 18 also the marginal cost of water supply isconstant at 1.
Illustrate what is the efficient price of water? Illustrate what are the quantities of water allocated to agricultural also industrial use?
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
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Determine also show how much these firms will sell and what they will charge.
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Government encourage a decision to expand? How would it affect the reputation of the business?
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