An electric power system has the following mix of generating capacity installed on its network which is owned by several competing generating firms:...

competitive market price in this case?

2. Describe how you would use the information above regarding the attributes of the generating capacity on this system, along with information about actual market prices and supplier behavior to measure whether or not market prices suggest that generators are exercising market power.

3. In New England, spot electricity prices in Maine are often much higher than are spot electricity prices in Boston even though they are part of the same regional network. How can you explain these price differences assume that the market is perfectly competitive.