2. It would cost the town of Irondale $50 million to build a gaspowered generator that could...
Question:
2. It would cost the town of Irondale $50 million to build a gaspowered generator that could produce a maximum of 5 megawatts of electricity at 15 cents per hour. An alternative would be for Irondale to build a $100 million coal-fired generator that could produce a maximum of 15 megawatts of electricity at 5 cents per hour. Irondale should [LO19B.2]
a. Build the coal-fired generator because its hourly operating costs are so much lower
b. Build the gas-powered generator since it is less expensive to build
c. Build the coal-fired generator because, while it would cost twice as much to build, it would produce three times as much electricity
d. Obtain more information before deciding what to do
Step by Step Answer:
Microeconomics
ISBN: 9781108420969
15th Canadian Edition
Authors: Campbell R. Mcconnell, Stanley L. Brue, Sean M. Flynn, Thomas P. Barbiero