Discussion
A promoter argues that doubling capacity will double the capital cost. This is
Answer: B
Correct answer: Wrong: cost scales to a power near 0.6
By the six-tenths rule the cost rises by a factor of \(2^{0.6} = 1.52\) - about half again, not double. It is not a rule for large plants only: the economy of scale applies throughout the range, which is why cost per tonne of capacity falls steadily as capacity rises.
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