A company makes an electric car that can travel much farther than other electric cars before it needs to be recharged. In contrast to petrol cars, it does not release the harmful fumes they give off. The batteries that power the car are extremely expensive, and the company is constructing a very large factory so that batteries can be produced more cheaply. Which concepts can be applied to the above statement?
- Aaverage cost and mergers
- Bexternal costs and mixed economy
- Cprivate costs and economies of scale
- Dpublic sector and market failure