7. Discuss the concept of economies of scale in the energy sector. Draw the graph.

economies of scale are the cost advantages that enterprises obtain due to their scale of
operation (typically measured by the amount of output produced), with cost per unit of
output decreasing with increasing scale.

As quantity of production increases from Q to Q2, the average cost of each unit decreases
from C to C1. LRAC is the long-run average cost

8. Discuss the relationship between energy demand with, economic growth, population, and
human activities, respectively.

energy demand are linked.as economies grow, energy demand increases demand for energy
is rapidly increasing, due to population and economic growth growing .growing populations
consume more energy availability of energy allows increasing human activities. If population
constrained, activity growth pulls back in turn.