Acountry needs to build new power plants to meet the increasing demand for electric power.
one possibility is to build coal-fired power plants, which cost $1300 per kw to construct and have an efficiency of 40 percent.
another possibility is to build clean-burning integrated gasification combined cycle (igcc) plants where the coal is subjected to heat and pressure to gasify it while removing sulfur and particulate matter from it. the gaseous coal is then burned in a gas turbine, and part of the waste heat from the exhaust gases is recovered to generate steam for the steam turbine. the construction of igcc plants costs about $1500 per kw, but their efficiency is about 48 percent. the average heating value of the coal is about 28,000,000 kj per ton (that is, 28,000,000 kj of heat is released when 1 ton of coal is burned).

if the igcc plant is to recover its cost difference from fuel savings in five years, determine what the price of coal should be in $ per ton.

Ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $860. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 320 units sold 285 units in ending inventory 35 variable costs per unit: direct materials $ 135 direct labor $ 355 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 64,000 fixed selling and administrative $ 27,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 245,100 cost of goods sold 205,200 gross margin 39,900 selling and administrative expense 31,275 net operating income $ 8,625 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing. what is the amount of the difference in net operating income between the two costing methods?

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.

Which of the following best explains how trade enables greater specialization among producers? a. trade diversifies the market by bringing specialized goods from around the world. b. trade requires distribution networks and adds one more step to the production process. c. trade enables producers to open up new markets for their goods and services. d. trade allows people to focus on one kind of production and trade for their other needs.