Problem 3 You are a regulator in charge of setting prices for GAZCO the local natural gas utility In providing gas to its customers GAZCO has two
Problem You are a regulator in charge of setting prices for GAZCO the local natural gas utility In providing gas
Problem You are a regulator in charge of setting prices for GAZCO the local natural
in charge of setting prices for GAZCO the local natural gas utility In providing gas to its customers GAZCO has two
Problem You are a regulator in charge of setting prices for GAZCO the
local natural gas utility In providing gas to its customers GAZCO has two
Problem You are a regulator in charge of setting prices
Problem You are a regulator
Problem 3 You are a regulator in charge of setting prices for GAZCO, the local natural gas utility. In providing gas to its customers GAZCO has two...

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Please solve and show step by step, thanks. ..... . Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Screen Shot 2017-08-21 at 1.06.16 AM.png Problem 3 You are a regulator in charge of setting prices for GAZCO, the local natural gas utility. In providing gas to its customers GAZCO has two types of most, a ?xed cost of building and maintaining its distribution pipes, and a marginal cost of purchasing gas on the open market. For the current year, the ?xed costs are $1?? million and the marginal costs are $5 per metric cubic foot (moi) of gas. There are 1 million customers in the GAZUD system. The demand from each customer is expected to be geustomer = 25 _ P 1Where p is the per-mcf regulated price of natural gas charged by GAZCD. ATTACHMENT PREVIEW Download attachment Screen Shot 2017-08-21 at 1.06.24 AM.png 1. Your buss, who has a degree from UCLA, tells you to just set prices equal to average cost. He calculates that this price is it 153'me of gas. Show that this will clear the market at a price equal to average cost. 2. 1What would he the deadweight loss at this price?

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