Question

Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 2 million households is Qd = 1,000 - 1P, and Enrodes can produce electricity at a constant marginal cost of $2 per megawatt hour. Consumers in this region of Michigan have recently complained that Enrodes is charging too much for its services. In fact, a few consumers are so upset that they're trying to form a coalition to lobby the local government to regulate the price Enrodes charges. If all the consumers of this region joined the coalition against Enrodes, how much would each consumer be willing to spend to lobby the local government to regulate Enrodes's price? Instruction: Enter your response rounded to the nearest penny (two decimal places).

Answer 1

P - loou - lou - Q 2 MR - dal n Now, d+R d (PQ) dQ d (1000 a-02) du 1000 - 20 MR- At movinisation 10 00 -20 = $2 M & 8-12 - Tovu -499 Q- 499 74 TUOU Q Sol Lobbying (pm – P.) a (501-2) P = me 1000 Q-2 Q- 998 & P-42 ant. = + 2 (ph_p) (a -ah 499 +į ( 501-2) (298-444) $ 373,50).5 For 2 mn households , this amount is not substantial See that the cost of the bot lobby per 2 x 106 – 0.187 ie 18.7 cents - head $ 373,SOIS Umillia to pay So aut. willing (RM-AMG Qm (50g -2) (490) $ 249,001.00

EDIT:

Answer for 1st part is: 373501.50

(b) Yes since 249001<373501.50