Solar and wind got soâ cheap, so fast
Solar panels and wind turbines are more efficient than they used to be and they cost less to produce.
âSource: The Atlanticâ, Decemberâ 2, 2015
Explain how the facts reported in the news clip affect theâ short-run andâ long-run average total cost of producing electricity.
How do they affect the marginal cost of producingâ electricity?
The decrease in the production cost of solar panels and wind turbinesâ _______.
A. decreases the average fixedâ cost, average totalâ cost, andâ long-run average cost of producing electricity
B. decreases the average total cost of producing electricity and increases theâlong-run average cost
C. decreases the average fixed cost of producing electricity but increases the average variable cost because more electricity is produced
D. decreases theâ long-run average cost of producing electricity but increases the average total cost of producing electricity in the short run
E. does not change the average fixed cost of producing electricity because the solar panels and wind turbines are variable inputs
With greater efficiency in producing electricity using solar panels and windâ turbines, the marginal cost of producing electricityâ _______.
A. is maximized
B. becomes negative
C. may decrease although marginal cost is already close to zero before using the more efficient equipment
D. increases
E. becomes equal toâ long-run average cost
Solar and wind got soâ cheap, so fast
Solar panels and wind turbines are more efficient than they used to be and they cost less to produce.
âSource: The Atlanticâ, Decemberâ 2, 2015
Explain how the facts reported in the news clip affect theâ short-run andâ long-run average total cost of producing electricity.
How do they affect the marginal cost of producingâ electricity?
The decrease in the production cost of solar panels and wind turbinesâ _______.
A. decreases the average fixedâ cost, average totalâ cost, andâ long-run average cost of producing electricity
B. decreases the average total cost of producing electricity and increases theâlong-run average cost
C. decreases the average fixed cost of producing electricity but increases the average variable cost because more electricity is produced
D. decreases theâ long-run average cost of producing electricity but increases the average total cost of producing electricity in the short run
E. does not change the average fixed cost of producing electricity because the solar panels and wind turbines are variable inputs
With greater efficiency in producing electricity using solar panels and windâ turbines, the marginal cost of producing electricityâ _______.
A. is maximized
B. becomes negative
C. may decrease although marginal cost is already close to zero before using the more efficient equipment
D. increases
E. becomes equal toâ long-run average cost