Growth And Cost Function of the Liquefied Natural Gas Carrier Industry

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Growth And Cost Function of the Liquefied Natural Gas Carrier Industry
Themis a Papageorgiou
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Cost Function of the Industry As it has been proven in many instances the cost function approach is probably one of the most useful tools in dealing with production processes. The cost function guarantees minimum cost and incorporates all the economically relevant aspects of the existing technology given a level of desired output and input and output prices. Under the assumptions of economic theory regarding production processes in the case of the Liquefied Natural Carrier Industry, output can ...be defined as the outcome of the ocean transportation process that results in carrying a quantity of liquefied natural gas from the locus of produc- tion and liquefaction to the locus of regasif ication and consumption. Similar definitions have been given for grain, Benford, 1967, ' for oil, Zannetos 1965 ; and for containers, Caracostas 1979.
The total quantity of liquefied natural gas trans- ported annually by a certain Liquefied Natural Gas Carrier is given by ! (P-B) ^•-\ (N o in iH in r-- o CN rH C\ r~- en in o^ KO o rH vo CN iH in «^ ■H '* VD 00 O r-\ r- r^ Ch r- ta- in ^ rH n in r-- VO ^-^ r^ cri «* (Ti 00 in iH n ^ (^ CO c ■H iH in f-\ r- •H CTi o ro o VD ^ M n "* VD r-- 4-" 'd' V.


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