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Ethanol or Gasoline Marginal Analysis

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Ethanol is widely used as a component in gasoline. Ethanol can be produced from various crops, with corn as the usual production supply in the United States. General Motors promotes their flexible-fuel vehicles (FFVs) that are capable of burning either gasoline or E85 ethanol-85%/gasoline-15% blend.

Use marginal analysis data to support your position to defend or dismantle the following statement.

Ethanol is a viable alternative to gasoline.

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Solution Summary

Ethanol and gasoline marginal analysis are examined. The expert dismantles the statement "Ethanol is a viable alternative to gasoline."

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Ethanol is a viable alternative to gasoline.

While it is in effect a fact that ethanol is a crucial component in the preparation of gasoline, the aspect of it being a viable alternative to gasoline is highly relative. From a marginal analysis point of view, it would help by delving into the additional benefits of ethanol that would make it a better option to gasoline. From a corporate point of view, marginal analysis is usually utilized in assisting management during decision making and knowing ways in which they can maximize their firms' profits (Definition of Marginal Analysis, 2011).

According to the former US ...

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