Hi, this is the question I really want to ask about, can any of you solve the whole question in details for me? Thank you so much.

- Attachment 1
- Attachment 2

Company K monopolies water supply in a region. Its cost for producing q units of water is C = F + CO whereF > 0 is a ﬁxed cost and c > 0 is a variable cost per unit. The inverse demand function of this market P01) = 2 — q. The inversedemand function intersects the K’s average cost curve AC(q) at least once asotherwise K will never want to operate. Formally, F and c have to satisfy4Fs(2—c)2andc < 2. a. Calculate the average cost function and the marginal cost function. b. Use average cost function to show whether the production exhibits increasing, constant, or decreasing returns to scale?In fact, this market is natural monopoly. A market industry or industry is a natural monopoly if costs are minimized by concentrating production in a single firm. Mathematically, it means the following. For any N 2-2 2 and q = 2?; q,, the cost function satisﬁes the following condition (Kg) 5 2‘2; q,- . If a single firm produces (1 units, it incurs cost of C (q). If N ﬁrms in total produce q units (each firm ‘3′, produces q,- units and EL q,- = q, the total cost they incur is 2:11 C (qi). The condition above says that the market is a natural monopoly if the cost of a single firm is lower than the total costs of N ﬁrms for producing the same level of total output. 0. Prove that the cost function C = F + CQ leads to the natural monopoly.

892616 944174hi and thanks regarding the particular post ive genuinely been searching regarding this kind of info online for sum time these days hence thanks a good deal 952456

pharmacy canadian superstore – cialis effects cialis prescription cost

479252 285619I adore foregathering useful info, this post has got me even far more information! . 349655

427274 608Some genuinely interesting information , well written and loosely user genial . 35580

723328 930691Wow, suprisingly I never knew this. Keep up with very good posts. 440618