Question

Consider a wholesale electric power market where 1 nuclear power plant, 1 coal plant, and 2...

Consider a wholesale electric power market where 1 nuclear power plant, 1 coal plant, and 2 natural gas plants supply power. The nuclear power plant can supply 100 megawatt-hours (MWh) per hour, the coal plant can supply 80 MWh, and each natural gas plant can supply 60 MWh. The marginal cost of the nuclear power plant is equal to $10, MCN = 10. Similarly, MCC = 12 and MCG = 15.

Demand fluctuates between off-peak (L) and peak (H) demand as follows:

DL : P = 87 - 1/2Q

DH : P = 112 - 1/2Q

a. Draw a graph of this market with the supply curve and both demand curves, and determine the equilibrium in both off-peak and peak hours.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
B. A regional electric utility currently relies on natural gas for power generation. It has 200...
B. A regional electric utility currently relies on natural gas for power generation. It has 200 Mw of natural gas capacity that is running on an average of 30 percent efficiency. It is studying options for supplying additional power to its customers. It has all of the following options: Coal:   A 50 megawatt (Mw) coal plant with a capital cost of $50 million and operating costs of $5 million per year plus the cost of coal. The coal plant would...
A coal-fired power plant can produce electricity at an operating cost of $0.06 per kilowatt-hour when...
A coal-fired power plant can produce electricity at an operating cost of $0.06 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of $0.12 per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The...
Suppose you are the CFO of a small Independent Power Producer in western PA (which is...
Suppose you are the CFO of a small Independent Power Producer in western PA (which is part of the PJM Electricity Grid (PA Jersey Maryland)). Your main business is to purchase natural gas and convert it to electricity for sale on the grid. You recently looked into PJM Western Hub futures contracts and natural gas futures that trade on the CMEGroup exchange. Assumptions: Natural Gas Input 60,000,000    MMBtu's / Six Months Megawatt Hours Generated    9,000,000    MWh /...
1. Consider the case of The Electric Company which produces electricity in New York State. The...
1. Consider the case of The Electric Company which produces electricity in New York State. The average monthly demand curve for the firm can be represented by P=65-Q where Q represents the quantity of electricity produced, in megawatt-hours (mwh) and P is measured in cents. Their marginal costs can be represented by MC=5+0.5*Q. Please provide graphs to accompany your analysis. a. (5 Points) The firm has market power. What price should they charge? How much electricity will they produce? b....
Consider the case of The Electric Company which produces electricity in New York State. The average...
Consider the case of The Electric Company which produces electricity in New York State. The average monthly demand curve for the firm can be represented by P=65-Q where Q represents the quantity of electricity produced, in megawatt-hours (mwh) and P is measured in cents.  Their marginal costs can be represented by MC=5+0.5*Q.  Please provide graphs to accompany your analysis. a. The firm has market power.  What price should they charge?  How much electricity will they produce?  
1. A regulated investor-owned electric utility currently generates 12 million Mwh per year with a total...
1. A regulated investor-owned electric utility currently generates 12 million Mwh per year with a total rate base, including transmission and distribution assets, of $10 billion. Its operating costs are $200 million annually. If the regulatory agency allows a 10 percent rate of return on the rate base, what is the regulated price of electricity, and the utility's annual earnings? 2. The utility projects its annual electricity demand to grow by an additional 7 million Mwh to 19 Mwh per...
1. Consider a monopolist where the market demand curve for the produce is given by P...
1. Consider a monopolist where the market demand curve for the produce is given by P = 520 - 2Q. This monopolist has marginal costs that can be expressed as MC = 100 + 2Q and total costs that can be expressed as TC = 100Q + Q2 + 50. (Does not need to be done. Only here for reference) 2. Suppose this monopolist from Problem #1 is regulated (i.e. forced to behave like a perfect competition firm) and the...
QUESTION 1 In a constant-cost industry where firms have identical cost, what will happen to the...
QUESTION 1 In a constant-cost industry where firms have identical cost, what will happen to the profit of the firms in the long run? Some firms will make positive economic profit, while some firms will make zero economic profit. All firms will be making zero economic profit. Only firms with positive economic profit will stay in the industry, because firms with negative or zero economic profit will exit the industry. Firms can be making positive, zero, or negative economic profit....
1. In the short run, the firm ________ change the number of workers it employs but...
1. In the short run, the firm ________ change the number of workers it employs but ________ change the size of its plant. A) can; can B) can; cannot C) cannot; can D) cannot; cannot 2.Jill runs a factory that makes lie detectors in Little Rock, Arkansas. This month, Jill's 34 workers produced 690 machines. Suppose Jill adds one more worker and, as a result, her factory's output increases to 700. Jill's marginal product of labor from the last worker...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run Phillips curve will shift left. the short-run Phillips curve will shift right. t here will be a movement to the right along the short-run Phillips curve. there will be a movement to the left along the short-run Phillips curve. the long-run Phillips curve will shift right. 2) In the long run, the Phillips Curve shows that the natural rate of unemployment is independent of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT