Why Do Many Environmental Groups Oppose Building More Hydroelectric Dams

question 3

Multiple Choice

Why do many environmental groups oppose building more hydroelectric dams when these dams produce virtually no chemical pollutants as they create electric power?

• A)Because they increase the rate of evaporation, hence more fresh water is lost.
• B)Because these dams are very expensive to build.
• C)Environmental groups tend to reject all new technological advancements.
• D)Dams can radically alter ecosystems.

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Definitions:

Oligopolistic Competition

A market structure in which a few large firms dominate the market, with limited competition between them.

Positive Sum Game

A situation in which all participants can gain or benefit in some way, in contrast to a zero-sum game where one's gain is exactly balanced by another's loss.

Herfindahl Index

A measure used to calculate the size of firms in relation to the industry and an indicator of the amount of competition among them; higher values indicate lesser competition.

Concentration Ratio

A measure used in economics to assess the level of competition in an industry by calculating the market share of the largest firms.