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Hello, this question is about Kuhn Tacker topic for peak load pricing 1. Kuhn Tucker Theorem Problem An electric company is setting up a power

Hello, this question is about Kuhn Tacker topic for peak load pricing

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1. Kuhn Tucker Theorem Problem An electric company is setting up a power plant in a foreign country and it nastg plan its capacity. E peak period demand for power is given by P1 = 40D - Q1 and the oilpeak is given by P2 = 380' 02. The variable cost is 2G per unit {paid in both markets} and capacity costs it} per unit which is only paid once and is used in both periods. a. Set up the economic problem of peakload pricing above by stating what the objective function and constraints are! b. Write out the KuhnTucker conditions for this problem! c. Find the optimal outputs [[11, {12] and capacity [K] for this problem! d. How much of the capacity is paid for by each market {i_e_ what are the values of A1 and A2}

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