Question

Economic feasibility of two methods is examined for meeting a targeted mine production. On a yearly basis, the following cost parameters (Rs in crores) are applicable for these methods.

Method 1Method 2
Fixed cost205
Variable cost2X

The annual rate of production, ‘X’ in million tonnes for which both the methods will yield the same operating cost is ______.

NAT

Min: 5 Max: 5

Answer: 5

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