# Economics

Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline. They estimated that in mass production the car would cost \$40,000 per unit to build. The engineers argued that Congress should for U.S. automakers to build this energy-efficient car.

a. Is energy efficiency the same thing as economic efficiency? Explain
b. Under what circumstances would the energy-efficient automobile described here be economically efficient?
c. If the goal of society is to get the most benefit from its limited resources, then why not ignore economic efficiency and build the energy-saving automobiles?

1. 👍
2. 👎
3. 👁
1. Energy efficiency may NOT be the same thing as economic efficiency. I have forwarded your post to 2 of my brothers, both executives in the car industry. Let's see what comments (if any) they make!

Sra

1. 👍
2. 👎
2. One comment was "Without having seen the 'vehicle' it is difficult to comment. What is its package for occupants and luggage? What is its speed capabilities? Safety compliance?

a. No, they are not necessarily the same thing. Sometimes building something energy efficient can cost a great deal and therefore not be economic efficient.

b. If it cost no more than building an ordinary car, then it is economic efficient.

c. It may even come to that!

Sra

1. 👍
2. 👎

## Similar Questions

1. ### Math Test

1. A rental car company charges \$150.00 for a weekly rental and an additional \$0.20 for each mile driven. The function rule C=0.20m+150.00 describes the relationship between the number of miles driven m and the total cost C. If

2. ### Economics

The production engineers at Impact industries have derived the expansion path shown in the following figure. The price of labor is \$100 per unit. a. What prices does an impact industry pay for capital? b. If the manager at impact

3. ### math

A road perpendicular to a highway leads to a farmhouse located 8 mile away.An automobile travels past the farmhouse at a speed of 80 mph. How fast is the distance between the automobile and the farmhouse increasing when the

4. ### Math

Suppose you driving to visit a friend in another state. you are driving at an average rate of 50 miles per hour. You must drive a total of 345 miles. If you have already driven 145 miles, how long will it take you to reach your

1. ### statistics

According to a study of 90 truckers, a trucker drives, on average, 540 miles per day. If the standard deviation of the miles driven per day for the population of truckers is 40, find the 99% confidence interval of the mean number

2. ### Programming and Design

Draw the hierarchy chart and design the logic for a program that calculates the projected cost of an automobile trip. Assume that the user's car travels 20 miles per gallon of gas. Design a program that prompts the user for a

3. ### Physics

An automobile of mass 2000 kg is driven into a brick wall in a safety test. The bumper behaves like a Hooke’s-law spring. It has an effective spring constant of 5 × 106 N/m, and is observed to compress a distance of 8.7 cm as

4. ### Algebra2

The cost, in dollars, of a one day car rental is given by C(x)=37+0.15x where x is the number of miles driven. What is the meaning of the value C(0)? use a complete sentence to answer the question Determine the total cost if 300

1. ### History

Which project would have been most likely to be funded under the National Reclamation Act of 1902? a dam to divert waters to a reservoir a scientific study to investigate changes in plant life near a river a national laboratory to

2. ### Science

After creating a prototype, which of the following would not be an appropriate next step in the design process of new technology? Research the need. Test product safety. Troubleshoot problems. Obtain a patent.(MY ANSWER)

3. ### statistics

16. Based on tests of the Chevrolet Cobalt, engineers have found that the miles per gallon in highway driving are normally distributed, with a mean of 32 miles per gallon and a standard deviation 3.5 miles per gallon

4. ### economics

engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline. they estimated that in mass production the car would cost 40000 per unit to build.