Chapter 10R, Problem 1CTQ

To determine

The reason the company erected 67 turbines, rather than 50 or 100.

Explanation of Solution

As the megawatt hours of electricity that are annually consumed, the power which is used annually affects the cost of the company, and the operating wind turbines will provide an accurate measure of consumed megawatt hours. The inaccurate determination of cost will lead to a wrong observation about income or profit which will make the company fail to achieve its accomplishments.

Moreover, there is full efficiency of the turbines to produce electricity because turbines only move when winds pass over the blade which means there would be no wastage, and the company can erect 67 turbines rather than anticipating 50 or 100. The exact measure will support the company to maintain its accurate position in the economy through the correct measure of consumption and expenditure.

Therefore, the company erected 67 turbines rather than any other quantity.

Economics Concept Introduction

Introduction:

The Castle River has a capacity of 44 megawatts at 60 turbines and with the addition of seven more turbines, it is producing more needed megawatts for areas located nearby.