Since a large and a small wind turbine have the same 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 wind power industry faces
A) constant economies of scale.
B) economies of scale.
C) diseconomies of scale.
D) a hump shaped cost curve.

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 indicates that there are economies of scale in the wind power industry. This means that as production volume increases, the average cost per unit decreases, which is a characteristic of economies of scale.

Since a Large and a Small Wind Turbine Have the Same