Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 3P
a.
To determine
The number of cows would it take to fuel 1,000,000 miles of annual driving by a fleet of cars. Also the annual cost.
b.
To determine
To compare with part.a answer wth gasoline fuled car with average of 30miles per gallon and cost of $4 per gallon.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Many times, the selling price of a product, p, is related to the demand, D, according to the relationship p=a-bD. However, a company has found that the price of their product can be related to demand ( in units per year) according to the following equation: p= $88.5 – (0.5)D0.5 . In addition, there is a fixed cost of $20,000 per year and the variable cost to manufacture the product is $20 per unit. a. What level of demand maximizes total revenue and the maximum revenue? b. What level of demand maximizes total profit for this product and the maximum profit?
A construction crew (that is currently unemployed and receiving $10/hr. in benefits) to fix a road. The cement is purchased from a rip-off monopolist that charges $10/bag more than anyone else. The Follow-up maintenance will be done after 1 year, using a different crew that we will assume is not unemployed. We will also assume the interest rate is 7%. The cost estimate provided by the contractor’s accountant is given in the table below:
ITEM
Quantity
Wage
Price
Total
Labor
1,000 hours
$20/hour
$20,000
Cement
500
$50
$25,000
Follow up maint.
500
$20/hr
$10,000
Project Total
$55,000
The opportunity cost of the project is
Group of answer choices
$55,000
$41,000
$39,000
$33,000
Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2-MGD tower is $153,200. The exponent in the cost capacity equation is 0.58.
Chapter 2 Solutions
Engineering Economy, Student Value Edition (17th Edition)
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Given below is a numbered list of cost terms. For...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Suppose you are going on a long trip to your...Ch. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - A company uses a variable speed honing machine to...Ch. 2 - Prob. 31PCh. 2 - An automobile dealership offers to fill the four...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - A hot water leak in one of the faucets of your...Ch. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48SECh. 2 - Prob. 49SECh. 2 - Prob. 50CSCh. 2 - Prob. 51CSCh. 2 - What is the optimal number of units that should be...Ch. 2 - Prob. 53FECh. 2 - Prob. 54FECh. 2 - Prob. 55FECh. 2 - Prob. 56FECh. 2 - Prob. 57FECh. 2 - Prob. 58FE
Knowledge Booster
Similar questions
- Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2.9- MGD tower is $153,200. The exponent in the cost- capacity equation is 0.47. The cost of a 0.75 million gallon per day induced-draft packed tower is $arrow_forwardTTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful: In (0.2) In (0.5) = -0.693 In (0.8) = -0.223 In (1.5) = 0.405 In (4,000) = 8.294 In (5,000) = 8.517 = -1.609 %3D TTV's profit maximizing price is: $2.44 O $3.37 $7.57 $13.36arrow_forwardIf the cost of an 8000-operation-per-second assembly line robot is $80,000 and the cost for one with twice the capacity is $120,000, the value of the exponent in the cost-capacity equation is closest to:a. 0.51b. 0.58c. 0.62d. 0.69arrow_forward
- Determine the minimum-cost trade-off between the MTBF and the MTTR for a system requiring 0.98 availability. The MTTR must be between 10 and 28 hr, and the MTBF must be at least 1200 hr. Consider the cost functions as: a. C(x) = 0.0002x2 ; C(y) = 12500/y b. C(x) = 2x; C(y) = 2000-y 2.arrow_forwardFive years ago, when the relevant cost index was 135, a nuclear centrifuge cost $32,000. The centrifuge had a capacity of separating 1250 gallons of ionized solution per hour. Today, it is desired to build a centrifuge with capacity of 3500 gallons per hour, but the cost index now is 270. Assuming a power-sizing exponent to reflect economies of scale, x, of 0.72, use the power-sizing model to determine the approximate cost (expressed in today’s dollars) of the new reactor.arrow_forwardAn engineering firm recently conducted a study to determine its benefit and cost structure (total cost). The results of the study are as follows: The total benefit from producing q units is TB(q): 15,000q-15q2 so that its marginal benefit is %3D MB(q): = 15,000-30q and the total cost of producing q units is TC (q) = 687,500 + 10q2 so that its marginal cost is MC (q) = 20q 1. Find the level of output q' that yields the maximum profit. 2. Find the maximum profit Tt" achieved by the firm at the output level q".arrow_forward
- The IT department allocates indirect costs to user departments on the basis of CPU time at the rate of $2000 per second. For the first quarter, the two heaviest use departments logged 900 and 1300 seconds, respectively. If the IT indirect budget for the year is $19.56 million, the percentage of this year’s allocation consumed by these departments is closest to: (a) 22.5% (b) 32% (c) 55% (d) 67%arrow_forwardThe cost for construction of a desulfurization system for flue gas from boilers at a 600 MW power plant was estimated to be $250 million. If a similar system for a smaller plant had a cost of $55 million and the exponent in the cost-capacity equation is 0.67, what is the size of the smaller plant that served as the basis for the cost projection?arrow_forwardThe total design and construction cost for a sand filter machine to handle a flow rate of 0.7 million gallons per day (MGD) was $1.9 million in 2010. Estimate the cost today for a flow rate of 2.4 MGD. The cost index in 2010 of 161 has been updated to 285 for this year. Component/System/Plant Size Range Exponent Activated sludge plant Aerobic digester Clarifier Centrifuge Sand filter Heat exchanger Cyclone separator 1 to 100 MGD 0.2 to 40 MGD 0.1 to 100 MGD 40 to 60 in 0.84 0.14 0.98 0.71 0.14 500 to 3000 ft? 20 to 8000 ft/min 0.55 0.64arrow_forward
- A company produces two different versions of a certain product. Let q₁ indicate the amount produced of the first version. The cost function c(q₁) for the first version (expressed in euros) can be described by the equation c(q₁) = 9₁ · √√0.59² +59₁ 10 a) For which value(s) of q₁ is the instantaneous rate of change of the cost function equal to 1.75? You may use the graphical calculator to find zeros of a polynomial function if needed. b) Using the result from a), give a precise economic meaning for the instantaneous rate of change of 1.75. We now denote 92 as the amount produced of the second version. The equation of the cost function c(9₂) for the second version is unknown. We do know that the current cost for a production of 2 units of the second version is 50 monetary units and that the elasticity of the cost in terms of the produced amount when 92 = 2 is equal to 1.88. c) Give a linear approximation ƒ of the cost function c(9₂) for production amounts close to q₂ = 2.arrow_forwardThe cost of a 68 m2 falling-film evaporator was 1.65 times the cost of the 30 m2 unit. What exponent value in the cost-capacity equation yielded this result?arrow_forwardThe cost for implementing a manufacturing process that has a capacity of 6000 units per day was $550,000. If the cost for a plant with a capacity of 100,000 units per day was $3 million, what is the value of the exponent in the cost-capacity equation?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning