The monthly demand equation for an electric utility company

Last updated: 7/12/2022

The monthly demand equation for an electric utility company is estimated to be p= 50- (10)x, where p is measured in dollars and x is measured in thousands of kilowatts-hour. The utility has fixed cost of 8.5 million dollars per month and variable costs of $35 per 1000 kilowatts-hours of electricity generated, so the cost function is C(x) = 8.5(106) + 35x. a. The value of x and the corresponding price for 1000 kilowatts-hour that maximizes the utility's profit is GHC b. The Total cost of producing this kilowatt of electricity is GHC