Recall the Application About the Increase in Purchases of Hybrid

question 93

Multiple Choice

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s) .
-According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2 emissions is measured in tons) describes the economic concept of

• A) using assumptions to simplify.
• B) ceteris paribus.
• C) marginal thinking.
• D) rational self interest.

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Definitions:

Sustainability Lens

An approach to making decisions that consider the long-term impacts on environmental, social, and economic factors.

Rate of Replenishment

The speed at which resources are renewed or restocked to their original levels.

E-factor

An entrepreneurial factor crediting the degree to which personal characteristics of the entrepreneur affect the success of the business venture.

Manufacturing Aspect

This term pertains to the facets and considerations involved in the production of goods, including technical, operational, and logistical components.