Econ 205 public policy, Foldvary
Written assignment 5, Water Provision, 20 pts. (2%), due March 13, 2018
Analyze and exlain the optimal pricing for water provision in a location such as California, assuming that the provision is by a governmental agency such as a water district or a municipality. Possibilities include pricing by average cost, marginal cost, or rates depending on usage. Optimal provision implies sustainable use. If user charges do not cover the full costs, explain how the remaining costs would be funded.