QUIZ 10 ANSWER KEY
Regulation of Electric Power
Version A
I. Multiple Choice
(1)c. (2)b. (3)e. (4)b. (5)c. (6)d. (7)d. (8)a. (9)d.
II. Problems
(1) [Sources of market power: 18 pts]
- increases, decreases.
- decreases, increases.
- increases, decreases.
(2) [Peak-load pricing: 40 pts]
- 80 thousand kWh is the capacity of the current generating system.
- $0.12 per kWh.
- 80 thousand kWh.
- $0.04 per kWh.
- 60 thousand kWh.
- 90 thousand kWh.
- 30 thousand kWh.
- increase.
- 10 thousand kWh.
- $1 thousand.
(3) [Wholesale power markets, economic dispatch: 20 pts]
- Demand and supply "curves" should be stairsteps.
- Generator A at 40 megawatt-hours, generator B at 30 megawatt-hours, generators C and D shut down.
- $20 per mWh.
- Generator B.
III. Critical thinking
The Meredith 101 lecture hall is an input that is a common cost because the more classes are scheduled by CAS, the fewer classes can be scheduled by CBPA, holding constant this input. If it were a joint cost, then classes could be scheduled by both colleges simultaneously! (Full credit requires a graph of a straight-line production-possibility curve.)
Version B
I. Multiple Choice
(1)a. (2)d. (3)e. (4)c. (5)a. (6)c. (7)a. (8)b. (9)b.
II. Problems
(1) [Sources of market power: 18 pts]
- decreases, increases.
- decreases, increases.
- increases, decreases.
(2) [Peak-load pricing: 40 pts]
- 90 thousand kWh is the capacity of the current generating system.
- $0.10 per kWh.
- 90 thousand kWh.
- $0.04 per kWh.
- 70 thousand kWh.
- 100 thousand kWh.
- 530 thousand kWh.
- increase.
- 10 thousand kWh.
- $0.5 thousand.
(3) [Wholesale power markets, economic dispatch: 20 pts]
- Demand and supply "curves" should be stairsteps.
- Generator A at 40 megawatt-hours, generator B at 50 megawatt-hours, generator C at 20 megawatt-hours, generator D shut down.
- $40 per mWh.
- Generator C.
III. Critical thinking
Save as version A.
[end of answer key]