Suppose we have an electric power system with just two time periods: peak and off- peak. There are three generators, no line losses, ramp rates, etc. With a price of $10/MW for off-peak and $20/MW peak, create a set of demand functions and merit cost functions that support these prices as a competitive equilibrium. List the cost and capacities for each generator.

Suppose we have an electric power system with just two time periods: peak and off- peak. There are three generators, no line losses, ramp rates, etc. With a price of $10/MW for off-peak and $20/MW peak, create a set of demand functions and merit cost functions that support these prices as a competitive equilibrium. List the cost and capacities for each generator.

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

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 2E

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