1. Explain and support graphically how a transition from the use of one resource to another (such as from fossil fuels to nuclear to renewable energy ) may take place . The transition from one resource to another will occur when the marginal costs of the first resource match the marginal cost of the second resource . For example , currently marginal costs of oil and natural gas are low but increasing and when they equal the marginal costs of renewable energy such as solar power a switch will occur from oil /gas to solar /wind . This point is called the switch point . Before switch point the marginal cost of resource 1 is lower and after the switch point the marginal cost of resource 2 are lower