Assuming that Company A will generate 3M RECs in the offshore operation. Considering that the company's own consumption is 300,000 RECs/a will be used for the operation in Australia, 2,7MRECs/a will remain to be sold in the Australian market.

Pricing

a - Use your knowledge of marginal revenue and marginal costs to estimate a price per unit produced, and explain if you are making an economic profit/loss using the ATC and marginal revenue curves). Draw an ATC curve with 2020 ($40) and 2040 (50) prices, all else held same. Use words to describe the graph. It is a hypothetical question. If is missing something, just say what are you assuming to finish it.