Minimising Cost Of Production

Question 0

What 5 main things affect cost of production?

Answer 0

1. Price of energy - low energy and running costs
2. Cost of raw materials - recycle if possible as in Haber process
3. Labour costs / wages - automation cheaper but high initial cost
   and running costs
4. Plant costs (equipment) - depends on condition - withstanding
   high pressure very expensive
5. Rate of production - faster better so catalyst used, but adds to
   cost

Question 1

What conditions are needed for maximum efficiency?

Answer 1

Fast reaction rates
High % yields
Keeping costs down - most important

Question 2

What is an optimum condition?

Answer 2

Give lowest production cost per kg of product

However, also need to consider need to make enough each day!
Low % yield okay if being recycle