1. In a perfectly competitive wholesale electricity marketwhere each firm owns 1 MW of capacity and all firms are price takersthere are three types of production technologies: 1) coal, 2) combine-cycle gas turbine (CCGT) natural gas, and 3) peaker natural gas. All coal plants have a marginal cost of $20/ MWh. All CCGT natural gas plants have a marginal cost of $40/MWh. All peaker natural gas plants have a marginal cost of $60/MWh.

In total, there is 100 MW of coal-fired capacity, 100 MW of CCGT natural gas capacity, and 200 MW of peaker plant natural gas capacity.

There are two periods each day, each with completely inelastic (fixed) demand. In the high-demand period, quantity demanded is 280 MWh. In the low demand period, quantity demanded is 190 MWh. Each day has one high-demand and one low-demand period of equal duration.

Now suppose there is a costless, perfect (i.e. no losses) storage technology. What is the competitive price in low-demand periods? What is the competitive price in high-demand hours?