One Potential Drawback with the Use of Ethanol as an Alternative

question 61

Multiple Choice

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

• A)diverts corn crops from the food supply.
• B)is a nonrenewable energy source.
• C)will increase greenhouse gas emissions.
• D)cannot be produced in the United States.

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Definitions:

Long-Run Equilibrium

A state in a market where, given sufficient time, all factors of production and costs are variable, allowing firms to enter or exit the market, and no economic profit is earned.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for competition based on product differentiation.

Market Demand

The total demand for a product or service in a market, aggregating all individual demands at various prices.

Long Run

A period of time in which all factors of production and costs are variable, allowing companies to adjust to market changes.