The option to switch between using oil or natural gas in a power station is:
A) an option to expand.
B) an option to abandon.
C) a production flexibility option.
D) a timing option.

Question

Quizplus · Accepted Answer

The option to switch between using oil or natural gas in a power station provides flexibility in production. This is because when one energy source becomes more expensive or less available than the other, the power station can switch to the more cost-effective or available option. Therefore, it is a production flexibility option.

The Option to Switch Between Using Oil or Natural Gas