Question
A 21-kW substation was built in County A in Texas for 1.4 million dollars in 2015. The same substation would cost 1.6 million to build
A 21-kW substation was built in County A in Texas for 1.4 million dollars in 2015. The same substation would cost 1.6 million to build in 2022. County B, a neighboring county, wants to build an 18-kW substation in 2022. Assume a power sizing exponent of .85 and estimate the cost of construction for the 18-kW substation (Answer: $1.4 million)
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Microeconomics
Authors: Robert S. Pindyck, Daniel L. Rubinfeld
7th edition
8131725995, 8131725993, 978-8131725993
