A medium-sized American city want to liberalize the electricity market. the following functions are known:

Total cost function:TK=125+5Q+0.0125Q2

Marginal cost function:GK=5+0.025Q

Demand function:QD=1000?1331?P

The quantity is measured in millions of kilowatt hours (in million kWh) the price is measured in cents per kWh (cents/kWh).

The good electricity fulfills the conditions of the complete market.

d) Computationally determine the long-run market supply functionQS by Horizontal aggregation of the individual supply function with the number n of typical suppliers you determined in subtask c) (c had the following results:QD=900 and n=9). Plot this market supply functionQS in the diagram.

Market supply function QS= ?

Price (Cent/kWh) 75 70 65 60 55 50 45 40 35 30 GK 25 20 DTK 15 10 Quantity (Mio.kWh) 100 200 300 400 500 600 700 800 900 1000