Turbine Pricing Model Welcome! You are encouraged to register with the site and login (for free). When you register, you support the site and your question history is saved.Wappo, a company that manufactures turbine blades for hydroelectric dams, has designed a new model of blade with a superior hydrodynamic form that will save energy and hence cost in implementation. Wappo is willing to sell these blades to a particular hydroelectric dam at no initial cost. The only payment will be the difference between, first, a percentage of the dam's improved profits, as measured by the percentage improvement of the hydroelectric dam efficiency times the value of energy sold by the plant over an 18-month period, and, second, the additional cost of installation and maintenance of the new turbines. On installation, the dam will make an estimated payment, which will be adjusted after eighteen months to equal the proper amount.Which of the following, if it occurred, would constitute a disadvantage for Wappo of the plan described above? Another manufacturer's introduction to the market of a similarly efficient turbine blade The dam's need for a large number of turbine blades Energy efficiency of the dam's current turbines somewhat below the industry average Levels of demand for hydroelectric power that were stagnant but above predicted levels Uncharacteristic weather conditions decreasing the amount of energy that can be harvested through hydroelectric means at the dam's location Review Answer