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When the capacity of a hydrogen plant is doubled, the capital cost increases by 73%.

1. Why does the capital cost not double when the capacity is doubled?

2. Derive an equation that relates the capacity to the capital cost for this particular hydrogen plant.

3. If the six-tenth rule is used, what would be the increase in the capital cost if the hydrogen plant capacity is doubled? Compare this increase with the 73% mentioned above and comment.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93128520

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