QUESTION TYPE: Paradox – Exception
ANALYSIS: Cold fusion would provide cheap energy, but electricity bills would barely decrease. Why?
All of the wrong answers recognize that raw material costs are only one factor in electricity prices. Other factors include construction, maintenance, legal bills, transmission, personnel, taxes, regulatory compliance, etc.
___________
- Raw materials cost less, but plant upkeep costs increase. This provides an explanation.
- Regulations are an important cost factor, and explain why electricity is still expensive.
- CORRECT. If anything, this would allow a further decrease in bills. This explains nothing.
- If fuel is relatively unimportant, this explains why costs did not drop much.
- This shows that one important cost is as expensive as ever (personnel).
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