One Potential Drawback with the Use of Ethanol as an Alternative

question 17

Multiple Choice

One potential drawback with the use of ethanol as an alternative energy source is

• A) that it is a non-renewable energy source.
• B) that it will increase greenhouse gas emissions.
• C) that it cannot be produced in Canada.
• D) the diversion of corn crops from the food supply.

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Definitions:

Fixed Cost

Costs that do not vary with the production volume or level of services provided, such as rent, salaries, and insurance.

Salary

Salary refers to a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Incremental Manufacturing Cost

The additional cost incurred to produce an extra unit of a product, reflecting only those costs that directly change with the level of production.

Production

Production involves the processes and methods used to transform raw materials or components into finished goods or services.