Suppose That Mystic Energy and E-Storm Are the Only Two

question 73

Multiple Choice

Suppose that Mystic Energy and E-Storm are the only two producers of hydrogen fuel cells. The market inverse demand curve for hydrogen fuel cells is P = 1,300 - 0.08Q, where Q is the number of fuels cells per month and P is the price per fuel cell. The marginal cost is constant at $500. Acting as a cartel, the owners of Mystic Energy and E-Storm agree to evenly split the market output. In this case, Mystic Energy produces ____.

• A) 5,000
• B) 3,000
• C) 2,500
• D) 1,500

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Definitions:

Hydroelectricity

Electricity generated by harnessing the energy of falling or flowing water, typically by using dams or diversion structures to drive water turbines and generators.

Tidal Energy

Renewable energy obtained by harnessing the movement of tides, typically through the use of tidal turbines or barrages, converting kinetic energy into electricity.

Energy Efficiency

The strategy of using less energy to provide the same service or perform the same task, which helps in reducing energy waste and improving economic efficiency.

Photovoltaic Cells

Semiconductor devices that convert sunlight directly into electricity through the photovoltaic effect.