Technological improvements and reduced equipment costs have made converting solar energy directly into electricity power more cost- defficient in the last decade. However the threshold of economic viability for solar power, (that is, the price fper barrel to which oil should have to rise in order for new solar power plants to be more economical than new oil fired power plants)is unchanged at $35.
Which of the following , if true, does most to help explain why the increased cost- efficiency of solar power has not decreased its threshold of economic viability?
A. The cost of oil has fallen dramatically .
B. The reduction of cost of solar power equipment has occured despite increased raw material cost for that equipment.
C. Technological changes have increased the efficiency of oil- fired power plants.
D. Most electricity is generated by coal, fire or nuclear rather than oil fired power plants.
E. When the price of oil increases, reserves of oil not previously worth exploiting become economically viable.
Let's get it right!!!!