microeconmoics

Let's suppose that there are a number of rms generating electricity for a city called Shelbyville. They will each supply into the wholesale market for electricity at their marginal cost of generation. The resulting hourly supply curve is piecewise linear, starting out with a gentle positive slope and becoming more steeply pitched at the quantity-price point (3,4). The rst segment follows the equation PS : 1 + (9,9. The second segment follows the equation P3 = 2[} | SQS. Demand for electricity varies by time of day. For each hour from midnight to 6pm, the aggregate demand in Shelbyville is PD : 2310(91). For each hour from 6pm to midnight, it is PD : 235699. (Assume that the individual demands, summed up to obtain aggregate demand, are identical.) 1. (4 points) Sketch the supply curve. What factor or factors might be determining its unusual piecewise linear shape? Answer in 25 or fewer words. 2. (6 points) Let's dene \"producer surplus\" as the integral between the equilibrium price of electricity and producers' marginal generation cost. First nd the equilibrium prices in the two time periods and label them on the graph. Then compute the producer surplus for an hour between midnight and 6pm and for an hour between 6pm and midnight