Electric Utilities That Have Substantial Construction Work in Progress Are

question 5

True/False

Electric utilities that have substantial construction work in progress are usually viewed as being less risky investments than electric utilities that do not have substantial construction work in progress.

---

Definitions:

Fixed Costs

Expenses that remain constant regardless of the volume of production or sales, like lease payments or wages.

Variable Input(s)

Inputs or resources whose quantity can be changed in the short term to adjust the level of production.

Short Run

A period in economics where at least one factor of production is fixed, limiting the adjustments a firm or industry can make.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods and services.