Recall the Application About Scale Economies in the Production of Electricity

question 43

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 the same 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 wind power industry faces:

• A)constant economies of scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)a hump shaped cost curve.

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Definitions:

Current Asset Management

The practice of managing a company's short-term assets and liabilities to ensure it has sufficient liquidity to run its operations efficiently.

Pro Forma Cash Budgets

Projected budgets that estimate the inflow and outflow of cash to a business over a specified period, used for planning purposes.

Accounting Statements

Financial documents that provide an overview of a company's financial performance and position at a given point in time.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its customers after a sale has been made, a key component in managing cash flow.