The cost of building an office complex, x floors high, in a prime location in Accra is made up of three components:   GH¢10 million for the land GH¢1/4 million per floor Specialized costs of GH¢10000x per floor.   How many floors should the office complex contain if the average cost per floor is to be minimized

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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  1. The cost of building an office complex, x floors high, in a prime location in Accra is made up of three components:

 

  • GH¢10 million for the land
  • GH¢1/4 million per floor
  • Specialized costs of GH¢10000x per floor.

 

How many floors should the office complex contain if the average cost per floor is to be minimized?

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