Self Evaluation questions ELECTRICAL Department, RESTRUCTURED POWR SYSTEM by A R ABHYANKAR, IIT Delhi, New Delhi. Module 2: 1. The cost curve of a generator is C(q)=25q2+2000q=500INR , where C is the total cost and q is the quantity produced. What is the marginal cost of a generator at 50 MW? 2.In a perfectly competitive market, the market price can be manipulated by a) A single player b) Some dominant players c) Nobody d. All players 3. Average cost curve of a generator is given by the function:AC(q)=(50q2+2000q+800)/q . At what generation level will the marginal cost (MC) curve meet average cost (AC) curve? 4.Marginal cost (MC) of a generator isπ(q)=5q+50INR/MW. If, for a perfectly competitive market, MCP is 100 INR/ MW, what is the marginal revenue of that generator? 5. The cumulative supply function is: . The cumulative demand function is: . Calculate supplier surplus and the demand surplus in INR. 6.Comment on which demand is more price elastic? a) the one having larger absolute slope for demand function b) the one having smaller absolute slope of demand function 7. Three Gencos (all having infinite power generating capacity) provide bids into market as follows: Genco A: 10 INR / MW Genco B: 5 INR / MW Genco C: Calculate MCP for inelastic demand of 10 MW.