Some cities charge a flat monthly fee while other cities


Most cities own the water system that provides water to homes and businesses. Some cities charge a flat monthly fee, while other cities charge by the gallon. Which method of pricing is more likely to result in economic efficiency in the water market? Be sure to refer to the definition of economic efficiency in your answer. Why do you think the same method of pricing isn't used by all cities?

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Microeconomics: Some cities charge a flat monthly fee while other cities
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