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Essay

California Electricity Pricing

Essay specific features

 

Issue:

Business

 

Written by:

Luis R

 

Date added:

August 3, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1456

 

Was viewed:

4202 times

 

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Essay content:

In turn, each firm's individual supply curve is the quantity supplied, from zero capacity to maximum capacity, at a price equal to marginal cost. Marginal cost is determined by taking the derivative of the cost function with respect to quantity. The cost function C(Q) for each firm is the sum of variable costs VC(Q) and fixed costs FC...
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The cost function C(Q) for each firm is the sum of variable costs VC(Q) and fixed costs FC. Because VC(Q) in this case is VC*Q, the derivative of the cost function is VC. Therefore, for each firm, the marginal cost MC is equal to the total variable cost TVC (See Appendix A) and is constant. In the short run, firms will generate profits if marginal costs exceed average costs...
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General issues of this essay:
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