During the night, the electricity sector has a marginal cost of $1/MWh (megawatt-hour) for the first 100 MWh produced (from wind turbines), and $20/MWh for each additional unit (from gas generators). During the day, they have a marginal cost of $1/MWh (megawatt-hour) for the first 50 MWh produced (from solar panels), and $20/MWh for each additional unit (from gas generators). Nighttime and daytime demand are given by Qnight D = 50 −P and Qday D = 200 −P , respectively. What are the market quantity and price during the day, and the market quantity and price at night? This is a model of the wholesale market for electricity, which you can think of as being competitive, but there is no resale between night and day
During the night, the electricity sector has a marginal cost of $1/MWh (megawatt-hour) for the first 100 MWh produced (from wind turbines), and $20/MWh for each additional unit (from gas generators). During the day, they have a marginal cost of $1/MWh (megawatt-hour) for the first 50 MWh produced (from solar panels), and $20/MWh for each additional unit (from gas generators). Nighttime and daytime demand are given by Qnight D = 50 −P and Qday D = 200 −P , respectively. What are the market quantity and price during the day, and the market quantity and price at night? This is a model of the wholesale market for electricity, which you can think of as being competitive, but there is no resale between night and day
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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During the night, the electricity sector has a marginal cost of $1/MWh (megawatt-hour) for
the first 100 MWh produced (from wind turbines), and $20/MWh for each additional unit (from gas
generators). During the day, they have a marginal cost of $1/MWh (megawatt-hour) for the first 50
MWh produced (from solar panels), and $20/MWh for each additional unit (from gas generators).
Nighttime and daytime demand are given by Qnight
D = 50 −P and Qday
D = 200 −P , respectively.
What are the market quantity and price during the day, and the market quantity and price at night?
This is a model of the wholesale market for electricity, which you can think of as being competitive,
but there is no resale between night and day.
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