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Permit Costs
A natural gas peaker plant sells electricity to a local utility at a price of $100 per MWh, with a fixed cost of $100,000 and variable costs 50q + 0.0005q2. (q is measured in MWh).
Question 1: What is the profit maximizing quantity of power to sell and how much profit will the generator make?
Question 2: Burning fossil fuel, the plant produces a lot of carbon dioxide. A new environmental regulation requires that for every Mcf of natural gas burned, an emission permit for 0.5 tons of CO2 must be purchased. It takes approximately 7.4 Mcf of natural gas to generate 1 MWh of electricity, and the cost of a 1ton CO2 permit is $12. Rewrite the cost function from 5a to include the cost of the permit and solve for the profit maximizing quantity of power and profit.
Historically in the United States southern interests typically did or did not support the Second Bank of the United States.
Which will be the outcomes of the bargaining process
You are comparing two potential mutually exclusive investment projects. You have calculated the expected NPV of project A to be $3,758 and that of project B to be $3,114. Can you be certain that you should recommend to your management to implement pr..
1. data for the market for graham crackers is shown below. calculate the elasticity of demand between the following
Using the firms marginal cost curve, compute the profit-maximization long-run supply curve for typical retailer. Compute the average total cost curve for the typical gasoline retailer, and determine that average total cost are less than price at the..
What is marginal cost pricing? What were three reasons for privatization? How do merit goods differ from public goods?
A strategic move limits one's flexibility and yet gives one an advantage. Why? How might a strategic move give one an advantage in bargaining?
laura is a gourmet chef who runs a small catering business in a competitive industry. laura specializes in making
Describe the problem or opportunity that the researcher was trying to address. Discuss the intent of the study and list any research questions or hypotheses that were used.
Why it is considered to have negative consequences for an economy and how can it be prevented or stopped once started?
Consider the following information about a hypothetical economy: C= 12500+ 0.8(Y-T)I= 2000 - 100rG= 2500; T= 3125
For a given price P =$5, AVC = 3 and FC =20000, what is the DOL if the manufacturer id producing 15000 units. Using the DOL value calculated above what is the profits for a 10% increase and a 10% decrease.
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