Cost… Show more Value of Water to Farmer ($/gallon/day) Value of Water to Farmer ($/gallon/day) Value of Water to Farmer ($/gallon/day) 0.1 Aquifer Recharge Rate (gallons/day) Aquifer Recharge Rate (gallons/day) Aquifer Recharge Rate (gallons/day) 340,000 Cost of Operating one Well (per day) Cost of Operating one Well (per day) Cost of Operating one Well (per day) 600 Wells Operating Total Water Output per day (galllons) Total Revenue Total Cost Total Profit Average Revenue (per well) Average/Marginal Cost (per well) Average Profit Marginal Revenue (per well) Marginal Profit (per well) 10 100,000 $ 10,000.00 $ 6,000.00 $ 4,000.00 $ 1,000.00 $ 600.00 $ 400.00 $ 1,000.00 $ 400.00 20 200,000 $ 20,000.00 $ 12,000.00 $ 8,000.00 $ 1,000.00 $ 600.00 $ 400.00 $ 1,000.00 $ 400.00 30 280,000 $ 28,000.00 $ 18,000.00 $ 10,000.00 $ 933.33 $ 600.00 $ 333.33 $ 800.00 $ 200.00 40 340,000 $ 34,000.00 $ 24,000.00 $ 10,000.00 $ 850.00 $ 600.00 $ 250.00 $ 600.00 $ – 50 380,000 $ 38,000.00 $ 30,000.00 $ 8,000.00 $ 760.00 $ 600.00 $ 160.00 $ 400.00 $ (200.00) 60 400,000 $ 40,000.00 $ 36,000.00 $ 4,000.00 $ 666.67 $ 600.00 $ 66.67 $ 200.00 $ (400.00) 70 400,000 $ 40,000.00 $ 42,000.00 $ (2,000.00) $ 571.43 $ 600.00 $ (28.57) $ – $ (600.00) 80 380,000 $ 38,000.00 $ 48,000.00 $(10,000.00) $ 475.00 $ 600.00 $ (125.00) $ (200.00) $ (800.00) 90 340,000 $ 34,000.00 $ 54,000.00 $(20,000.00) $ 377.78 $ 600.00 $ (222.22) $ (400.00) $ (1,000.00) QUESTION Implementing a well permit fee of ______ pesos would increase the marginal cost of operating a well, and would achieve the economically efficient number of wells? • Show less