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Question: national disasters have caused an exodus from city a to...

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National disasters have caused an exodus from City A to City B. The sudden increase in demand is straining the capacity of City B’s electrical system. City B’s alternatives have been reduced to buying 150,000 MWh of electric power at a price of $75 per MWh, or refurbishing and recommissioning the abandoned power station in downtown City B. Fixed costs of that project are $10 million per year, and variable costs would be $35 per MWh. Should City B build or buy

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