Consider an electricity market where there are three suppliers, each with constant marginal cost (a reasonable approximation in electricity generation). Firm 1 has a capacity of 200 at MC = 5. Firm 2 has a capacity of 100 at MC = 8. Firm 3 has a capacity of 100 at MC = 10.
1) For the first firm we have the supply curve Qs1=40P, for the second firm - Qs2=12.5P and for the third one - Qs3=10P. Then, we can find the industry supply curve:
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