What is the estimated cost of a factory with 30,000 sq. ft. of workspace if it costs $0.71 million to produce a similar factory with 50,000 sq. ft. of workspace and the economies of scale exponent X in the cost ratio estimation equation is 0.75. The nearest answer is: a. $0.3M b. $0.4M c. $0.5M d. $0.6M e. $0.7M

What is the estimated cost of a factory with 30,000 sq. ft. of workspace if it costs $0.71 million to produce a similar factory with 50,000 sq. ft. of workspace and the economies of scale exponent X in the cost ratio estimation equation is 0.75. The nearest answer is: a. $0.3M b. $0.4M c. $0.5M d. $0.6M e. $0.7M

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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Q.6 To express relationship between the average cost functions, which of the following is true: (a) ATC = AFC - AVC. (b) AVC= AFC + ATC. %3D (c) AFC= ATC + AVC. (d) AFC= ATC – AVC. %3D
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ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above