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A capital investment model for elastic demand and non-linear production capacity |
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| Affiliation: | 1. Department of Chemical Engineering, Universitat Politècnica de Catalunya, EEBE, C/ Eduard Maristany 16, Barcelona 08019, Spain;2. Department of Chemical Engineering, Delft University of Technology, Van der Maasweg 9, Delft 2629 HZ, Netherlands;1. Utrecht University, Utrecht, the Netherlands;2. PBL Netherlands Environmental Assessment Agency, Den Haag, the Netherlands;3. Netherlands Association for Renewable Energy (NVDE), Utrecht, the Netherlands |
| Abstract: | A methodology is developed that determines the most desirable capital investment under the conditions of an elastic demand that is time dependent and a non-linear production function. The methodology also identifies the optimum yearly production rates and unit selling prices. The methodology is implemented by a computer program. |
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