Assume that a water distribution monopoly serves two consumer types, industrial and residential. The demands by two classes are as follows. Industrial: QI=30-PI and Residential: QR=24-PR. The company has no costs other than the fixed costs of the pipeline, which is $324. What are the Ramsey prices? a. PI= $10 and PR=$10 b. PI= $30 and PR=$24 c. PI= $18 and PR=$18 d. PI= $15 and PR=$12 e. None of the above please provide a detailed explanation!

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Perfect Competition

It is the structure of the market that is said to exist when with many buyers and sellers exchanging similar commodities and its price is fixed by the market forces, demand, and supply, and a single firm cannot cause an impact over the price or market value of the homogenous product. This structure of the market is called perfect competition.