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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

Practice quiz 11

0 votes
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Suppose that every year, a nuclear power plant has to go through a month of outage before it can start producing any electricity that year.

The cost of the outage is 0.8 million dollars (this is the plant's only fixed cost).

Assume that, after the outage has been performed, the plant's profit-maximizing quantity is to produce 20,000 GWh (Giga Watt/hour) at an average variablecost of $100 per GWh.

If the price is $150 per GWh, the plant should:

asked Apr 29 by canvas-2beaa592712eb (175 points)

1 Answer

+1 vote
it should keep running and continuing to produce at the 150 per GWh. Its avariable cost of 100 per GWh and not a fixed cost.
answered Apr 29 by canvas-98fa74eec54bd (240 points)
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