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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
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 I Coal fired 1 30 108 3 30 base-load Coal fired 10 8 50 2 15 peaking Average variable costs are constant for any volume of output up to full capacity operation. OO 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. 0 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 - 108, where the price P is measured in dollars per unit and demand is measured in thousands of units per day
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