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:

Direct Investment

The action of an entity from one country investing to achieve dominant control over a corporation in another country.

Foreign Market

The markets outside the company's home country where it seeks to sell its products or services.

Greatest Commitment

The highest level of dedication or obligation one can have towards a cause, goal, or relationship.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.