Cost of Electricity to the Grid Is Calculated in

question 92

Essay

Cost of electricity to the grid is calculated in $ per MWh. On a typical day, the Darlington plant produces an average of 84 000 MWh. The OEB recently ruled that Darlington would receive $51 per MWh of electricity produced. The cost of fuel is $5 per MWh. Operations and maintenance costs are $37 per MWh. How much profit will the Darlington plant make in a year?

---

Definitions:

Loses

Refers to the situation where expenses surpass revenues, resulting in negative financial performance.

Long-Run Monopolistically Competitive Equilibrium

The condition in which firms in a monopolistically competitive market earn just enough revenue to cover all costs, including a normal profit, in the long term.

Enter Market

The act of beginning to offer goods or services in a particular marketplace.

Exit Market

The act of leaving a market or discontinuing the production and sale of a product or service, often due to unprofitability or strategic realignment.