The engineers at national research laboratory built a prototype automobile which could be driven 180 miles on the single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k per unit to build. The engineers argued that the Congress must force the US automakers to make this energy-efficient car.
Q1. Is energy efficiency the similar thing as economic efficiency? Illustrate.
Q2. Under what conditions the energy-efficient automobile would explain here be economically proficient?
Q3. If the goal of society is to get the most advantage from its limited resources, then why not avoid the economic efficiency and build the energy-savings automobile?