The fuel cost function and generation capacity of the 4 generating units in the thermal power station are given bellow. (a) If you are the power plant engineer, identify which one of the generating unit production cost is less? (b) Is the total power plant capacity sufficient to meet the demand of 450 MW? (neglecting loss) F1 = 561 + 7.92 P1 + 0.001562 P12 (0MR/h) Generating MW (Pc) units Generation F2 = 310 + 7.85 P2 + 0.00194 P22 (OMR/h) 1 75 F3 = 78 + 7.97 P3 + 0.00482 P32 (OMR/h) 100 F4 = 472.8 +7.47 P4 + 0.023 P42 (OMR/h 150 50 234

The fuel cost function and generation capacity of the 4 generating units in the thermal power station are given bellow. (a) If you are the power plant engineer, identify which one of the generating unit production cost is less? (b) Is the total power plant capacity sufficient to meet the demand of 450 MW? (neglecting loss) F1 = 561 + 7.92 P1 + 0.001562 P12 (0MR/h) Generating MW (Pc) units Generation F2 = 310 + 7.85 P2 + 0.00194 P22 (OMR/h) 1 75 F3 = 78 + 7.97 P3 + 0.00482 P32 (OMR/h) 100 F4 = 472.8 +7.47 P4 + 0.023 P42 (OMR/h 150 50 234

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Acme Boards” makes and sells skateboards for $240.00. The costs associated with the business include…

A: Break-even point refers to the point at which total revenue equals total costs, resulting in neither…

Q: A company manufactures dog leashes that sell for $20.97, including shipping and handling. The…

A: Here, given information is: Selling price per unit: $20.97 Fixed cost: $23,202 Variable cost per…

Q: A company produces two types of solar panels per year: x thousand of type A and y thousand of type…

A: Answer: Given, Revenue function: Rx,y=3x+4y Cost function: Cx,y=x2-2xy+6y2+5x-28y-9 Profit= Revenue…

Q: Least-cost abatement curve Solar PV Coal CCS Nuclear Feasible set new build Low-penetration wind…

A: A cost borne by firms when they are required to remove and/or reduce undesirable nuisances or…

Q: Prob. # 5] A rigid tank contains a mixture of vapor and liquid water at a temperature of 70 "C. The…

Q: An industrial plant has hired a contractor to develop a solar farm nearby for the industrial plant's…

A: The objective of this question is to determine which generator brand (A, B, C, or D) has the least…

Q: A company has a production capacity of 4000 units every month with an efficiency of 90%. The fixed…

A: Now we are given with the values as:- Production capacity/Output = 4000 units Fixed Cost = P670,000…

Q: A certain task can be performed by the executive, working alone, in 4 hours. If he delegates the…

A: Costs can be categorized into fixed costs (remain constant regardless of production levels) and…

Q: Find the average time per unit required to produce the first 30 units, if the slope parameter of the…

Q: A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is…

A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: The equation p(x)= −40?^2 + 8000? − 250000 takes x, the number of items produced of a particular new…

A: Maximum profit is a price goal where a company wants to make as much profit as feasible as soon as…

Q: The value of TFC is given to be as $500 and the value of TVC for the 3rd unit is $60 Calculate the…

A: # The total fixed cost of the firm remains same throughout the output and the total variable cost…

Q: 1 Vehicle purchase. A student living in Lower Hutt is considering the purchase of a new vehicle. An…

A: a) Decision Variable (D): This variable represents the choice of the type of vehicle, which can be…

Q: Ima Newworker requires 43 minutes to produce her first unit of output. If her learning curve rate is…

A: The learning curve is an illustration of the methodical increase in cost savings and production…

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

100%

The fuel cost function and generation capacity of the 4 generating units in the thermal power station
are given bellow.
(a) If you are the power plant engineer, identify which one of the generating unit production cost is
less?
(b) Is the total power plant capacity sufficient to meet the demand of 450 MW? (neglecting loss)
F1 = 561 + 7.92 P1 + 0.001562 P12 (OMR/h)
Generating
MW (Pc)
units
Generation
F2 = 310 + 7.85 P2 + 0.00194 P22 (OMR/h)
1
75
F3 = 78 + 7.97 P3 + 0.00482 P32 (OMR/h)
2
100
F4 = 472.8 +7.47 P4 + 0.023 Pą2 (OMR/h
150
4
50

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

An industrial plant has hired a contractor to develop a solar farm nearby for the industrial plant's electricity consumption. During the 3-year construction period, the contractor will need to run a generator to power the construction. Cost analysis from previous projects indicates: Generator Brand Installed Cost Cost per Hour A $22M $500 B $23M $400 C $25M $250 D $30M $150 At the end of 3 years, the generator will have a salvage value equal to the cost of removing them. The generator will operate 6,000 hours per year. The lowest interest rate at which the contractor is willing to invest money is 7%. (The minimum required interest rate for invested money is called the minimum attractive rate of return, or MARR.) Select the alternative with the least present worth of cost. O Choice "C" with $29,872,900 O Choice "B" with $29,298,320 O Choice C with $28,936,450 O Choice "A" with $29,872,900
Cal Tech Inc. manufactures video games for "The Play Station IlI". Variable costs are estimated to be $20 per unit and fixed costs are $10,875. The demand-price relationship for this product is Q = 1,000 - (4 x P) where P is the unit sales price of the game and Q is the demand in number of units. (а) (b) (с) (d) Find the breakeven quantity (or quantities). What is the company's maximum possible revenue? What profit would the company obtain by maximizing its total revenue? What is the company's maximum possible profit?
PW values of a project were calculated for several values of (i). The results were plotted as shown in the figure. a. What are the values of ROR (i*) for this project? Put 100 integer number followed immediately by% 75 1- 50 25 2- 10 20 30 40 50 b. If this project is a public sector project (i.e. its ROR is low). What value should we choose as the ROR for the 50 project? Put integer number followed immediately 75 by% 100 (O00TS x) Md
Lifewear, a manufacturer of women's sports clothes, is considering adding a line of skirts and jackets. The production would take place in a part of its factory that is currently not being used. The first output would be available in time for the 2021 fall season. The following information is available. Answer parts (a) through (d). New Product Line Information First cost in 2020 ($) 15,100,000 Planned output (units/year) 324,000 Observed, current dollar MARR before tax Study period Materials 0.25 6 years Year 2020 Prices ($/unit) Labour 12 8.25 35 Output a. What is the real internal rate of return? (This is most easily done with a spreadsheet.) The real internal rate of return is about percent. (Round to one decimal place as needed.) b. What inflation rate will make the real MARR equal to the real internal rate of return? The inflation rate would need to be about percent. (Round to two decimal places as needed.) c. Calculate the present worth of the project under three possible future…
Convert 22.4 m/sec to mi/hr
A manufacturer of dishwashers is preparing to set the price on a new design. Demand is thought to depend on the price and is represented by D = 2100 – 4.3P The accounting department estimates that the total costs can be represented by C = 4840 + 6.2D (a) Develop a model for the total profit in terms of the price, P. (b) What will be the total profit if the price is $380.