The Queensland government is trying to encourage a higher usage of renewable energy. Many new firms are now entering the market for renewable energy. Consider now that the market for renewable energy is perfectly competitive in Queensland. SolarFarm is one of the many firms in Queensland producing renewable energy through its solar farms. Answer the following questions: a. Students from The University of Queensland discovered a revolutionary technology that can help produce renewable energy more efficiently, greatly reducing production costs. SolarFarm decided to use this technology and start earning an economic profit due to this market. Type E for Enter, X having a cost advantage. Given this, there is an incentive for people to E I for Exit or R for Remain In. b. SolarFarm is able to sell the energy produced at a rate of $0.209 per kWh. For every kWh of renewable energy produced, it is estimated that SolarFarm will incur a cost of $0.084. SolarFarm will also need to pay a daily rent of $301.53 for the solar farms they have. Every day, SolarFarm is able to supply 7400 kWh to users across Queensland. Instead of solar farms, SolarFarm could use the land to start wind farms which will bring in a profit of $150 per day. Calculate the daily economic profit earned by SolarFarm. $ 473.47 Answer to two decimal places. c. Queensland Government decided to continue supporting the initiative to use more renewable energy. They introduced a subsidy for every kWh of renewable energy produced by firms. Would this initiative increase or decrease the marginal cost for SolarFarm to produce renewable energy? D Type I for Increase or D for Decrease.