Which of the Following Best Explains Why Wind and Solar

question 78

Multiple Choice

Which of the following best explains why wind and solar power have been slow to replace coal- and gas-based energy production?

• A)Energy production with coal and gas generates less pollution.
• B)Wind and solar energy availability is subject to large fluctuations because of the inability to store the power.
• C)Governments have heavily subsidized coal and gas energy plants, but have not subsidized wind and solar.
• D)Consumers are largely unwilling to buy power generated from wind and solar.

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Definitions:

Average Total Cost

The total cost divided by the quantity of output produced, representing the average cost per unit of output.

Long-Run Cost Diagram

A graphical representation depicting the relationship between output and the long-term costs of production when all inputs can be varied.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

X-Inefficiency

A concept where a firm operates with higher costs than are necessary due to lack of competition or internal inefficiencies.