Diversity factor has direct effect on the____________?
Correct answer: A. fixed cost of unit generated
- A. fixed cost of unit generated
- B. running cost of unit generated
- C. both A. and B.
- D. neither A. nor B.
Explanation
A higher diversity factor reduces the combined maximum demand compared with the sum of individual demands, lowering required plant capacity and therefore fixed cost per unit. It does not directly determine the running cost.
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