Since a large and 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.

Question

Quizplus · Accepted Answer

The fact that a large turbine has four times the generating capacity but costs less than three times as much as a small turbine implies that the cost per unit of output decreases as output increases. Therefore, as more electricity is generated by wind turbines, the average cost of generating electricity is decreasing.

Since a Large and a Small Wind Turbine Have Similar