5. Given the following information about two asphalt mixing plants that a contractor can buy state whether there appear to be increasing, decreasing or no returns to scale. Plant tons mixed/hour Total cost of mixing plant 250 $80 million 386 $113 million Smaller plant Larger plant

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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5. Given the following information about two asphalt mixing plants that a contractor can buy state
whether there appear to be increasing, decreasing or no returns to scale.
Plant
tons
mixed/hour
Total cost of mixing plant
250
$80 million
386
$113 million
Smaller plant
Larger plant
Transcribed Image Text:5. Given the following information about two asphalt mixing plants that a contractor can buy state whether there appear to be increasing, decreasing or no returns to scale. Plant tons mixed/hour Total cost of mixing plant 250 $80 million 386 $113 million Smaller plant Larger plant
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