The monthly demand equation for an electric utility company is estimated to be p 82 10 5 x where p is measured in dollars a x is

Question

The monthly demand equation for an electric utility company is estimated to be p 82 10 5 x where p is measured in dollars a x is measured in thousands of killowatt hours The utility has fixed costs of 4 000 000 per month and variable costs of 42 per 1000 kilowatt hours of electricity generated so the cost function is C x 4 106 42x a Find the value of x and the corresponding price for 1000 kilowatt hours that maximize the utility s profit b Suppose that the rising fuel costs increase the utility s variable costs from 42 to 52 so its new cost function is C x 4 106 52x Should the utility pass all this increase of 10 per thousand kilowatt hours on to the consumers a Find the value of x and the corresponding price for 1000 kilowatt hours that maximize the utility s profit X Type an integer or a decimal

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