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Quantitative Finance · Glosario

¿Qué es Merit order?

Definition 5.6 Markets III: Commodities, Energy and Crypto · Capítulo 5 — Power Markets I: Design

The merit order is the ranking of generating capacity by short-run marginal cost, lowest first; with offers at marginal cost, the supply curve of the auction is the merit order and the price is the marginal cost of the last plant needed.

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