be as specific as possible and always include explanations that describe your reasoning.

Suppose you're writing a report for the CEO of a wind power company. The CEO has the following questions she would like analyzed and answered as well as possible.

1.The revenue for the company depends on the electricity market. The electricity market is in turn impacted by the demand for electricity. How does the Law of Diminishing Marginal Utility for electricity relate to the Law of Demand in shaping the relationship between price and the quantity demanded for electricity?

2.Suppose the CEO is looking at building a new wind power plant on the plains of Texas. The CEO would like more information on the total costs of building the new wind power plant. A part of those total costs are opportunity costs. What are some alternatives that might go into the opportunity cost calculations and explain how you might go about calculating the opportunity cost (e.g., for those alternatives, what information might you need to figure out how those alternatives contribute to the opportunity cost of the project).

a.What might be some sources of sunk costs for this project and explain how timing affects the consideration of sunk costs.

3.Price Elasticity of Demand and Supply are useful for market analysis. The CEO would like to know whether you think the Price Elasticity of Demand for electricity is elastic or inelastic and why? Furthermore, the CEO would also like to know whether you think the Price Elasticity of Supply for electricity from competitors is elastic or inelastic and why? What factors affect these price elasticities?

4.Suppose the government imposes new regulations on wind power plants in response to concerns about their impact on the local community. How would this impact the market? How would this impact the profitability of the new wind power plant? If people's incomes are going up at the same time and electricity is a normal good, how does this impact the market and the profitability of the new wind power plant?

5.Due to political pressure, the government imposes a binding price floor in the marketfor electricity from renewable energy sources. How does this impact the market for both consumers, producers,and economic efficiency, and what are the potential impacts on the new wind power plant?