When detailing the cost of producing electricity with turbines of different sizes,the concept of scale economies is realized when the average cost tends to

Question

Quizplus · Accepted Answer

The concept of scale economies suggests that as the size of the turbine increases, the cost per unit of electricity produced decreases. Therefore, the correct choice is C, which states that the average cost tends to decrease as the size of the turbine increases.

When Detailing the Cost of Producing Electricity with Turbines of Different