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Unformatted text preview: ORIE 3300/5300 Fall 2011 Prof. Bland Problem Set 7 Due 10/25/2011, 11:40 a.m. Submit hardcopy in Hollister B14 at the beginning of lecture on 10/25 . Only 1 sub- mission from each group. This problem set is a continuation of Recitation Exercise 7. The problem set begins with problem 2. Problem 1 was the problem on the recitation exercise. If you worked with a partner on Recitation Exercise 7, work with the same partner on this (or you may work alone). 2. ESI management is considering a different approach to going green. Corporate headquarters is considering a voluntary carbon tax on the number of MWh consumed during the fourth quarter. The tax will be of the form ρ > 0 dollars per MWH for every MWH above some threshold Θ (in MWHs) used during the quarter. To aid them in making this decision they have inquired about how much revenue would be lost this quarter if such a voluntary carbon tax were imposed. Modify your algebraic model to incorporate the carbon tax. Your objective function should be net revenue: subtract the carbon tax from the...
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- carbon tax, voluntary carbon tax