Question

This question is based on a two node network with one transmission line connecting the two...

This question is based on a two node network with one transmission line connecting the two nodes. Assume that a Regional Transmission Organization operates the electricity market for this system, and that all generators provide supply offers equal to their marginal costs. Node A has 50 MWh of electricity demand and a generator with a marginal cost of $15/MWh. Node B has 30 MWh of electricity demand and a generator with a marginal cost of $45/MWh. Assume that both generators have 100 MW of capacity, and the transmission line connecting Nodes A and B has 100 MW of capacity. How much congestion revenue does the RTO collect in this market?

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
This question is based on our three-node network where all resistances are equal. Generators are located...
This question is based on our three-node network where all resistances are equal. Generators are located at nodes 1 and 2, while the customer is located at node 3. Power flows through the network are: F(1,3) = 44.5 MW F(2,3) = 55.5 MW F(1,2) = -11 MW (i.e., 11 MW from node 2 to node 1) Line (2,3) is overloaded by 1.5 MW. Assume that lines (1,3) and (1,2) can carry a very large amount of power, so that they...
A power system has two generators with the following total cost functions: Generator A: TCA =...
A power system has two generators with the following total cost functions: Generator A: TCA = 5 + 4QA + QA2 Generator B: TCB = 5 + 2QB + 2QB2 In the total cost functions, Q represents generator output. You may assume that the generators have no capacity constraints. Suppose that electricity demand during some hour was 50 MWh and that the utility running the power system uses economic dispatch to meet demand. Calculate the system lambda.
A power system has two generators with the following total cost functions: Generator A: TCA =...
A power system has two generators with the following total cost functions: Generator A: TCA = 5 + 4QA + QA2 Generator B: TCB = 5 + 2QB + 2QB2 In the total cost functions, Q represents generator output. You may assume that the generators have no capacity constraints. Suppose that electricity demand during some hour was 50 MWh and that the utility running the power system uses economic dispatch to meet demand. Calculate the system lambda.
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...
(This question is a variation on the pricing dilemma game from class.) Two firms, A and...
(This question is a variation on the pricing dilemma game from class.) Two firms, A and B, sell widgets to a market of 100 buyers. The firms' widgets are undifferentiated, and the firms know each others' costs and capacities. Furthermore the firms are playing a one-time pricing game; widgets are obsolete after this one selling opportunity. Each buyer is interested in purchasing a single widget, and has an RP of $10. Firm A has lower costs than Firm B, but...
1. Assume that Bradley Corporation Inc. produces advanced analytic software for computer simulations called Market-It. Based...
1. Assume that Bradley Corporation Inc. produces advanced analytic software for computer simulations called Market-It. Based on an analysis of product sales over a two-year period, Bradley’s marketing department estimates the demand for Market-It to be QM = 1,200 − 8PM + 4PS, where QM denotes units sold of Market-It software, PM denotes Market-It’s price, and PS denotes the price of a (competing) best-selling statistical software package (with both prices in dollars). a) Currently, PM = $200 and PS =...
1. Consider a team that can segment its customers into two distinct markets whose demands are...
1. Consider a team that can segment its customers into two distinct markets whose demands are given by                                     P1 = 25 – .0001Q   P2 = 50 – .0002Q The relevant marginal revenue expressions are MR1=25–.0002Q, and MR2=50–.0004Q, respectively. Finally, let the marginal cost be MC=5. Assuming that the team can perfectly identify members of each market and prevent them from trading with one another, find    the optimal quantities, Q1* and Q2*, and prices, P1* and P2*. Given your...
QUESTION 1 If a monopolist only charges one price, then we can conclude that: A. Consumer...
QUESTION 1 If a monopolist only charges one price, then we can conclude that: A. Consumer surplus is the same as under perfect competition B. Consumer surplus is lower than under perfect competition C. Consumer surplus is same under any market structure D. Consumer surplus is higher than under perfect competition QUESTION 2 Suppose you are considering buying the only major league baseball team in a major US city. Currently, the team prices all seats at a single monopoly price...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
One of Jim O’Brien’s customers, Mid-West Supply, has presented him with an opportunity for a significant...
One of Jim O’Brien’s customers, Mid-West Supply, has presented him with an opportunity for a significant amount of freight moving into a new market for Hardee. Hardee is a truckload carrier primarily moving freight in east/west lanes in the United States, with some movements into Canada. Hardee has dispatch centers located throughout the United States which have some dock and warehousing capacity. The new move would be between Lincoln, NE and Miami, FL. Hardee has avoided this market because of...