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Water
1) A Water company supply water to the town of a fixed price for any level demand.
The amount demanded in the same over 24 hours period. But it differ day (5 am to 5 pm) vs. night (5 pm to 5 am), e.g. days might be 8, nights 4, but 24 hours always 12.
2) The water company products water on this production function
Yi = √K.Fi i = day or night, k = plant size, F = fuel
3) It can only adjust plant size in the next 24 hour cycle, not during a cycle.
4) With unit costs CK fqe plant Size and Cf for fuel cost (12 hours)
What size plant should be built?
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