Why does green power cost more than conventional power


Problem

An electric power distributor charges residential customers $0.10 per kilowatt-hour (kWh). The company advertises that "green power" is available in 150 kWh blocks for an additional $4 per month. (Green power is generated from solar, wind power, and methane sources.)

a. If a certain customer uses an average of 400 kWh per month and commits to one monthly 150 kWh block of green power, what is her annual power bill?

b. What is the average cost per kWh with green power during the year?

c. Why does green power cost more than conventional power?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why does green power cost more than conventional power
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