Purchase Solution

Energy Efficiency Vs. Economic Efficiency

Not what you're looking for?

Ask Custom Question

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 $60,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car.

Is energy efficiency the same thing as economic efficiency? Explain.

Under what circumstances would the energy-efficient automobile described here be economically efficient?

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 automobile?

Purchase this Solution

Solution Summary

Briefly describes difference between energy and economic efficiency.

Solution Preview

Energy efficiency is not same as economic efficiency. Energy efficiency is only related to one input in the production process (in this case gasoline) to the output generated by that particular process whereas economic efficiency takes into account the total costs that needs to be incurred to produce a certain value. In this particular case, the ...

Solution provided by:
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
Recent Feedback
  • "Thanks"
  • "Thanks"
  • "Very good! "
  • "thanks"
  • "Thank you!"
Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.