- Read Note At The Bottom Question A My Professor Got 10 Not Sure How Question B My Professor Got 6 Not Sure How Quest 1 (69.14 KiB) Viewed 20 times
*Question B my professor got 6 not sure how
*Question C my professor got 3.5 not sure how
1. Europe has set a goal of 20% of their electric power from renewable sources by 2008. The most important technology is wind power, and the most desirable sites are offshore with a mile from land on sandbars and other shallow areas. These sites may become congested, however. As congestion increases, the output per windmill declines. Some data are given below. The cost per month of a windmill is 2 thousand euros. The sales price of a thousand kw is 1 thousand euros. Number of windmills Total electric power (000s kw per month) Average product Marginal product 0 0 1 4 2 8 3 12 4 16 5 19 6 21 7 22 8 22 9 21 10 20 11 18 a. Compute marginal and average products and enter in the table. b. Find the equilibrium number of windmills. c. Find the efficient number of windmills. d. What is the license fee per month that brings about the efficient number of windmills?