Electric Utility Companies Have Built Larger and Larger Electric Generating

question 374

Multiple Choice

Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of

• A) constant returns to cost.
• B) increasing returns to cost.
• C) economies of scale.
• D) diseconomies of scale.

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Definitions:

Institutional Model

A framework or system defining the structure, operations, and behavior of institutions based on established laws, norms, and practices.

Situated Knowledge

Knowledge and understanding that is specific to a particular context or situation, acknowledging that perspectives are shaped by an individual's or group's experiences.

Socialist Feminists

A branch of feminism that focuses on both the public and private spheres of a woman's life, addressing issues related to economic justice and gender equality within a socialist framework.

Karl Marx

A 19th-century philosopher and economist known for his critique of capitalism and theory of historical materialism, positing class struggle as the driver of social change.