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Energy Market: Graphical Analysis (15 points) Consider the market for energy. Assume that energy is provided by two types of firms operating in a perfectly

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Energy Market: Graphical Analysis (15 points) Consider the market for energy. Assume that energy is provided by two types of firms operating in a perfectly competitive market. One firm provides energy using a conventional fuel (C) such as coal, and the other firm uses an alternative fuel (A) such as solar. The aggregate (market) supply is made up of the sum of the supply curves of these two firms, which together with the aggregate demand determines the equilibrium price and quantity for energy. You know the following about the cost structures of these firms: (i) MPC(C)

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