Discussion
Capacity and cost for a plant scaled by the six-tenths rule from a 10 t/h base costing 25 million.
| Capacity (t/h) | Scale ratio | Cost factor | Cost (million) |
|---|---|---|---|
| 10 | 1.0 | 1.00 | 25.0 |
| 15 | 1.5 | 1.28 | 32.1 |
| 20 | 2.0 | 1.52 | 37.9 |
| 30 | 3.0 | 1.93 | 48.3 |
What does the table show about capital cost per tonne of capacity?
Answer: B
Correct answer: It falls steadily as capacity rises
Divide cost by capacity in each row: 2.50, 2.14, 1.90 and 1.61 million per t/h. Because the cost factor grows more slowly than the capacity ratio, the cost per tonne of capacity falls throughout - not only above some threshold. That continuous economy of scale is the whole content of the six-tenths rule.
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