Formula/Graph With D-lnik


Graph depicts hypothetical cost curve, with capacity in Megawatts on horizontal axis, Cost ($/MWh) on vertical axis. Cost runs from zero to $250. Dots on the graph represent units from Excelon, PSEG, and Third Parties. General shape is upward sloping, with lowest priced capacity (baseload) less than $20, Coal units around $40, Combined cycle units in the $50-$60 range, efficient peekers around $75, and Superpeekers ranging in price at various higher levels. The graph notes that the data is for illustrative purposes only, and is not an actual representation of market conditions.

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Graph of output on horizontal axis and price on vertical axis depicts curved upward sloping marginal cost curve. A downward sloping, linear marginal cost curve denoted Q2 = 0 crosses the MC curve at Q*. A second marginal revenue curve, shifted out and away from the origin denotes Q2 > 0, with a correspondingly higher price and output Q**.

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Updated June 25, 2015

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