8. You are working as an analyst for a potential investor in a new wind farm. The wind farm will be located in a small electricity market. The market currently has one major generation rm and several small competitive generators. Your task is to predict the response of the major generation rm to the entry of the wind farm. This will provide predictions of the market price for the wind farm owner. Demand in the electricity market is xed at 1200 MW. Firm 1 is the existing major generation rm in the market. It has a capacity of 500 MW and constant marginal cost of $20/MWh. Firm 2 can be considered the aggregate of the small competitive generation rms. The supply curve of Firm 2 is 32(1)) = 350 + IOP. Call the new wind farm Firm 3. The planned capacity of the wind farm is 300 MW. Based on meteorological forecasts, the output of the wind farm will be 50 MW for 12 hours of the day and 200 MW for 12 hours of the day. Market regulations require this output to be offered at a price of zero. That is, S3(P) = 50 for 12 hours each day and 83(P) = 200 for the other 12 hours. The marginal cost of Operation for the wind farm is $0/MWh. (a) Find the inverse residual demand facing Firm 1 during the hours in which the wind farm produces 200 MW. [2 points]