Recall the Application About Scale Economies in the Production of Electricity

question 134

Multiple Choice

Recall the Application about scale economies in the production of electricity from wind to answer the
following question(s) .
-Recall the Application. Since a large or a small wind turbine have similar installation, operating and maintenance costs, but a large turbine has four times the generating capacity but costs less than three times as much as a small turbine, the average cost of generating electricity with wind is

• A)constant at each output.
• B)increasing as output increases.
• C)decreasing as output increases.
• D)at first decreasing and then increasing as output rises.

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Definitions:

Scanlon Plan

A type of gain-sharing program that rewards employees for contributions to the company's efficiency and profitability.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Compensation

The full quantity of cash and other forms of rewards offered to an employee by their employer as compensation for services rendered.

Straight Commission

A compensation model where an employee's pay is based entirely on the sales they generate, with no base salary.