Economy of scale

Cost - Capacity Factors

Applicable to similar projects of different capacities SIX-TENTHS FACTOR RULE:

where = desired cost of capacity u2 = known cost of capacity q1 X = cost-capacity factor = 0,6 (av.)

EXAMPLE: c2 = $8000000 /200.000 tons/yeak\0.6 =$12 100 000

uuujljuu tons/year/

BY KMG

DATE 1970

EXPONENT

0.60

RARF

MID 1970

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