The FYI in this module discusses the possibility that regulators set prices for wind energy on the basis of average total cost. Explain why policymakers who don't want to pay subsidies would choose average cost pricing over marginal cost pricing in the market for wind energy.
A. Encourages competition, Ensures profitability, Accounts for externalities
B. Reflects long-term costs, Attracts investors, Mitigates market fluctuations
C. Fosters innovation, Aligns with consumer preferences, Balances supply and demand
D. Supports small businesses, Reduces price volatility, Ensures consumer affordability