Directions: Read the following passage and answer the item that follow the passage. Your answer should be based on the passage only.
Passage
The history of renewable energy suggests there is a steep learning curve, meaning that, as more is produced, costs fall rapidly because of economies of scale and learning by doing. The firms’ green innovation is path-dependent: the more a firm does, the more it is likely to do in the future. The strongest evidence for this is the collapse in the price of solar energy, which became about 90% cheaper during the 2010s, repeatedly beating forecasts. Moving early and gradually gives economies more time to adjust, allowing them to reap the benefits of path-dependent green investment without much disruption. A late, more chaotic transition is costlier.
With reference to the above passage, the following assumptions have been made:
Which of the above assumptions is/are valid?
Statement I is valid. The passage describes path-dependent green innovation as leading to a steep learning curve, rapid cost reductions due to economies of scale and learning by doing, and smoother economic adjustments when implemented early and gradually. These outcomes-reduced costs, increased efficiency, and minimized disruption-are inherently beneficial for a country's economic growth and public finances. Although India is not specifically mentioned, the principle articulated in the passage is universally applicable to economies undertaking green investments, making the assumption that such investments would benefit India a reasonable and valid inference.