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  • 1. What was Kaiser\'s cost per megawatt hour, based on its 1996 contract with BPA?
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  • 2. What did Kaiser project its revenue per megawatt hour would be for selling its unused energy back to BPA, based on current market prices in 2000?
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  • 3. Based on those numbers, what would Kaiser\'s profit be per megawatt hour of energy resold?
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  • 4. Conduct your own cost-benefit analysis from the information provided, by making one list of the benefits of closing the plant, and one list of the costs of closing the plant.
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  • 5. What did Kaiser project as its benefit for closing the plant for the month of December 2000?
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  • 6. What did the United Steelworkers estimate Kaiser\'s cost would be for closing the plant, in terms of paying laid-off workers?
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  • 7. What is the additional opportunity cost for closing the plant?
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  • 8. Using cost-benefit analysis, what decision did Kaiser make about continuing production or shutting down the plant?
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  • 9. How did the profit motive guide Kaiser\'s decision?
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  • 10. What was the United Steelworkers Union objection to Kaiser\'s decision and the \"windfall profits\" that occurred as a result of events outside of Kaiser\'s control?
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  • 11. Who gained from Kaiser\'s decision?
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  • 12. Who lost from Kaiser\'s decision?
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