Consider an electricity market where the base of the demand curve is vertical and varies linearly between 2000MW and 4000MW (so is equally likely to be found anywhere in that range). Above 3900MW demand can be curtailed at a price of $3000/MWh. The market is competitive with three types of plants as below. Technology FC per MWh Variable costs per Carbon Emissions MWh in tonnes per MWh Peak (diesel peaker) $10 $200 25 Mid (gas) $30 $60 10 Baseload (hydro) $50 $0 0 (a)What is the optimal amount of baseload plant that should be built? (2 marks) (b) What is the duration of the price spike so that the peaker plant just recovers its fixed costs? (2 marks) (c) What is the optimum mid-load capacity? (2 marks) (d) What is the total capacity and hence peak capacity? (2 marks) (e) Sketch the load duration curve and the offer stack (2 marks) (f) Show all plants just cover costs (4 marks)