A new production facility for ACME, Inc., is being designed. You've been asked to estimate the costs for the new 100,000 ft² facility. A similar facility was constructed two years ago, with a size of 75,000 ft² and a cost of $8.3 million. Using a power- sizing exponent of 0.85, what would you estimate the cost to be for the new ACME production facility? Round to the nearest thousands of dollars.
A new production facility for ACME, Inc., is being designed. You've been asked to estimate the costs for the new 100,000 ft² facility. A similar facility was constructed two years ago, with a size of 75,000 ft² and a cost of $8.3 million. Using a power- sizing exponent of 0.85, what would you estimate the cost to be for the new ACME production facility? Round to the nearest thousands of dollars.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Engineering Econ Hw1 Q2
Transcribed Image Text:A new production facility for ACME, Inc., is being designed.
You've been asked to estimate the costs for the new 100,000 ft²
facility. A similar facility was constructed two years ago, with a
size of 75,000 ft² and a cost of $8.3 million. Using a power-
sizing exponent of 0.85, what would you estimate the cost to be
for the new ACME production facility? Round to the nearest
thousands of dollars.
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