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

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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