Natasha has been told that if she reduces the thermostat


Natasha has been told that if she reduces the thermostat setting on the heating system at her home by 1 degree, she will be able to reduce her present annual energy consumption of 5,000 kWh of energy by 20%. In doing so , she will be able to save as much as $250 per year.

a) What is the implicit cost of 1 kWh of energy consumption?

b) If Natasha reduces the thermostat setting by anther degree , she can reduce her annual energy consumption by another 10%. Based on your answer in part (a) , How much more money would she be able to save ?

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Business Economics: Natasha has been told that if she reduces the thermostat
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