Critical Reasoning (CR) | Re: Technological improvements and reduced equipment costs have made conve

Iam confused on this question. Someone pls help. Iam not able to eliminate A.

why would the actual price of oil doesn't matter?

For example,

Let us assume the cost to produce electricity by solar plants is 100$/unit
Let's say the cost to produce electricity by oil plants is 65$/unit

Here, the price of oil should increase by 35$ to make the solar based electricity economically viable.

Now let's say due to technological advancements, the cost to product electricity by solar plants has become 50$/unit
Now, if the oil price has reduced, then the cost to produce electricity will also reduce, let's say it became 15$/unit, then the threshold will remain unchanged.

What am i doing wrong here? Pls help.

Statistics : Posted by sanjay14765423 • on 16 Feb 2006, 20:28 • Replies 61 • Views 88329

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