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:

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
Problem 46P
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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
Transcribed Image Text: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
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