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.

Analyze the impact of allocating overhead costs on product pricing and profitability.

Differentiate between various overhead allocation methods and their suitability for different types of production processes.

Apply overhead allocation methods to estimate product costs accurately.

Understand the distinction between direct costs and overhead costs.

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Reluctance or refusal to make a definite decision or express a definite opinion or plan.

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