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Question: A group of enterprising engineering students has developed a process for extracting combustible methane gas from cow manure (don't worry, the exhaust is odorless). With a specially adapted internal combustion engine, the students claim that an automobile can be propelled 15 miles per day from the "cow gas" produced by a single cow. Their experimental car can travel 60 miles per day for an estimated cost of $5 (this is the allocated cost of the methane process equipment-the cow manure is essentially free).

a. How many cows would it take to fuel 1,000,000miles of annual driving by a fleet of cars? What is the annual cost?

b. How does your answer to Part (a) compare to a gasoline-fueled car averaging 30 miles per gallon when the cost of gasoline is $3.00 per gallon?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92314115

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