You own a small electric utility with three generating plants, each of which has a different capacity and costs, as shown in table 1 below. Note that the marginal costs for each plant are constant. a) On a set of price- quantity axes, draw the supply curve for your utility. b) Suppose that electricity demand was 150 MWh. Calculate the total, marginal and average cost for your utility. c) Repeat part (b), now suppose that electricity demand was 185 MWh. Table 1: Capacity, fixed cost and marginal cost for generators for problem 2. Сараcity (MWh) 120 Plant Name Fixed Costs(S) Marginal Cost ($/MWh) Apple Strawberry 50 15 60 25 40 Banana 50 10 75
You own a small electric utility with three generating plants, each of which has a different capacity and costs, as shown in table 1 below. Note that the marginal costs for each plant are constant. a) On a set of price- quantity axes, draw the supply curve for your utility. b) Suppose that electricity demand was 150 MWh. Calculate the total, marginal and average cost for your utility. c) Repeat part (b), now suppose that electricity demand was 185 MWh. Table 1: Capacity, fixed cost and marginal cost for generators for problem 2. Сараcity (MWh) 120 Plant Name Fixed Costs(S) Marginal Cost ($/MWh) Apple Strawberry 50 15 60 25 40 Banana 50 10 75
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![You own a small electric utility with three generating plants, each of which has a different capacity
and costs, as shown in table 1 below. Note that the marginal costs for each plant are constant.
a) On a set of price- quantity axes, draw the supply curve for your utility.
b) Suppose that electricity demand was 150 MWh. Calculate the total, marginal and average
cost for your utility.
c) Repeat part (b), now suppose that electricity demand was 185 MWh.
Table 1: Capacity, fixed cost and marginal cost for generators for problem 2.
Plant Name
Сараcity (MWh)
Fixed Costs(S)
Marginal Cost ($/MWh)
Аpple
Strawberry
120
50
15
60
25
40
Banana
50
10
75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8399ad39-cc70-47e3-b6d3-f118d9d6052b%2F91bfac87-2a67-4ada-8144-808e9bbfbd13%2Fh4i3b7k_processed.png&w=3840&q=75)
Transcribed Image Text:You own a small electric utility with three generating plants, each of which has a different capacity
and costs, as shown in table 1 below. Note that the marginal costs for each plant are constant.
a) On a set of price- quantity axes, draw the supply curve for your utility.
b) Suppose that electricity demand was 150 MWh. Calculate the total, marginal and average
cost for your utility.
c) Repeat part (b), now suppose that electricity demand was 185 MWh.
Table 1: Capacity, fixed cost and marginal cost for generators for problem 2.
Plant Name
Сараcity (MWh)
Fixed Costs(S)
Marginal Cost ($/MWh)
Аpple
Strawberry
120
50
15
60
25
40
Banana
50
10
75
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