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Ans in full steps Q1. An oil transmission company uses only two inputs, pipelines and workers. Its output is the volume of oil transmitted (V),

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Q1. An oil transmission company uses only two inputs, pipelines and workers. Its output is the volume of oil transmitted (V), which is determined by the area of the cross section (3.14r2) and the length of pipeline (h). Thus, V - 3.14r?h, where r is radius of the pipeline and h is the total length of the pipeline. The cost of building the pipeline depends on the surface area of the pipeline S, where S - 6.28rh, which cost $100 per S. Besides, cost of hiring labor for managing the pipeline depends on the length of the pipeline, which costs $10 per h. A standard pipeline radius r is 0.5 meter. (a). If both r and h double, output (V) will increase by how much? (b). If both r and h double, total cost (C) will increase by how much? (c). Based on (a) and (b), are these economies of scale

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