In 1992,the Enron Development Corporation,a Subsidiary of the Houston-Based Energy

question 29

Multiple Choice

In 1992,the Enron Development Corporation,a subsidiary of the Houston-based energy company,signed a contract to build the largest-ever power plant in India,requiring a total investment of $2.8 billion.After Enron had spent nearly $300 million,the project was canceled by Hindu nationalist politicians in the Maharashtra state where the plant was to be built.Which of the following is true?

• A)This move by the government played well with Indian voters with visceral distrust of foreign companies since the British colonial era.
• B)This move by the government was widely criticized in India on the grounds that it would deter future foreign investment.
• C)This move by the government was widely criticized in India on the grounds that severe power shortages have been one of the bottlenecks hindering India's economic growth.
• D)None of the above

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.

Quantity of Output

Refers to the total amount of goods or services produced by a company over a specific period.

Costs

The total expenses incurred by a business in producing goods or providing services.

Variable Cost

relates to expenses that vary directly with the level of production or business activity, such as raw materials and labor costs.