What is the utility company peak and off-peak profit levels

Assignment Help Other Subject

Reference no: EM132196707

Question: The marginal cost of General Electric(GE) generating electricity each hour is $5 million dollars and this utility company generates 5 Billion kilowatts per hour (KWh) regardless of consumer hourly demand. However, GE's generating capacity is also 5 Billion KWh.

A) Draw the figure that depicts the cost this utility company providing hourly electricity service.

Suppose the peak and off-peak consumer demand for this utility's electricity is as follows:

Pp = 12 - Q Peak demand

Pop = 9 - Q Off-peak demand

Where the intercepts for the respective demand curves are measured in millions of dollars, and output levels are measured in billions of KWhs.

Suppose the state regulatory commission requres General Electric to charge the same price to peak and off-peak customers and the price is set that peak demand equals this utility company's hourly capacity.

B.1 What is the utility company's peak and off-peak profit levels?

B.2 What is the off-peak surplus electricity generated? When using this pricing scheme?

C.1 What are the respective profit maximizition profit levels for peak and off-peak periods?

C.2 What is the total surplus electricity generated when using this pricing scheme?

D.1 What are the socially optimal peak and off-peak profit levels?

D.2 What is the total surplus electricity generated when using this pricing scheme?

Reference no: EM132196707

Questions Cloud

Literature on the integrated customer experience : Review the current literature on the Integrated Customer Experience and write a literature review which could be suitable for publication in an academic

What were positives and negatives related to the color : What were positives and negatives related to the color of their skin that was still an issue in most of their experiences.

Write a c program to solve a single quadratic equation : Reading of coefficients a, b, c shall be done by calling a function named readCoeffs(), once for each coefficient.

Purpose for conducting employee orientation : Identify the reasons and purpose for conducting employee orientation.

What is the utility company peak and off-peak profit levels : What is the utility company's peak and off-peak profit levels? What is the off-peak surplus electricity generated? When using this pricing scheme?

Specific performance be appropriate remedy : In which of the following situations would specific performance be an appropriate remedy? Discuss fully.

Excited about their empowerment program : A lack of Management Commitment The employees of a midsized printed circuit-board manufacturer had been excited about their empowerment program

Define strategies for international business : Relate the case to theories, concepts, and strategies for international business. Assess the situation and listen carefully to the suggestions in the case.

Simulate the remote keyless entry control for the driver : The server motor rotates back-and-forth between 0 and 180 degrees to simulate the driver side door locked (0 degree) or unlocked (180 degree) positions.

User Account

All Pages