barnacle Industries wa awarded a patent over 15 years ago for auniqe undustrial strength cleaner…

barnacle Industries wa awarded a patent over 15 years ago for auniqe undustrial strength cleaner that removes barnacles and otherparticles from the hulls of ships. Thanks to its monopoly position, Baenacle has earned more than $160million over the past decade.It’s customer-spanning the gamut from cruise lines tofreighters-use the product because it reduces their fuel bills. Theannual (inverse) demand function for Barnacle’s product is given byP = 220 – 0.0000006Q , and Barnacle’s cost function is given byC(Q) = 200Q. Thanks to subsidies stemming from an energy billpassed by Congress nearly two decades ago , Baracle does not haveany fixed costs: The federal government essentially pays for theplant and capital equipment required to make this energy-savingproduct.