The market for electric power in Belize is perfectly competitive and consists of many price taking firms who generate electricity in one of three types of generating plants: coal-fired "base-load" plants, natural gas-fired plants, and coal-fired "peaking" plants. All plants of a particular type are identical. Their characteristics are described below: Plant type Average Total daily Total daily Daily capacity Number variable cost fixed cost capital charge of plant of plants ($ per unit) (thousands of (thousands of $ (thousands of $ per day) per day) units per day) Natural gas 5 6 22 2 60 fired Coal fired 1 30 108 3 30 base-load Coal fired 10 50 2 15 peaking Average variable costs are constant for any volume of output up to full capacity operation. Any new plant that might be built would be a natural gas-fired plant with cost and operating characteristics identical to natural gas-fired plants given in the table above. There are an unlimited number of entrants who could come in to this industry. I Once built, a plant lasts forever, unless it is permanently closed down. A plant has zero salvage value. Market demand on a typical day is given by D(P) = 160 - 10P, where the price P is measured in dollars per unit and demand is measured in thousands of units per day