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Regulation Costs

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Regulation Costs. Ottawa Construction, Ltd., is a medium-sized housing contractor located in eastern Ontario. The company is adversely affected by new local regulations requiring it to pay $10,000 to cover sewer and water hook-up charges for each new apartment Ottawa builds. Before such expenses, Ottawa's construction costs are described as:
Regulation Costs. Ottawa Construction, Ltd., is a medium-sized housing contractor located in eastern Ontario. The company is adversely affected by new local regulations requiring it to pay $10,000 to cover sewer and water hook-up charges for each new apartment Ottawa builds. Before such expenses, Ottawa's construction costs are described as:    where Q is the number of apartment units built per year and TC includes a normal rate of return on investment.   where Q is the number of apartment units built per year and TC includes a normal rate of return on investment.
Regulation Costs. Ottawa Construction, Ltd., is a medium-sized housing contractor located in eastern Ontario. The company is adversely affected by new local regulations requiring it to pay $10,000 to cover sewer and water hook-up charges for each new apartment Ottawa builds. Before such expenses, Ottawa's construction costs are described as:    where Q is the number of apartment units built per year and TC includes a normal rate of return on investment.

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