8.16 The fixed and variable costs for three potential manu- facturing plant sites for a rattan chair weaver are shown: Site 1 2 3 Fixed Cost per Year Variable Cost per $500 $11 1000 7 1700 4 a) Over what range of production is each location optimal? b) For a production of 200 units, which site is best? PX Unit

8.16 The fixed and variable costs for three potential manu- facturing plant sites for a rattan chair weaver are shown: Site 1 2 3 Fixed Cost per Year Variable Cost per $500 $11 1000 7 1700 4 a) Over what range of production is each location optimal? b) For a production of 200 units, which site is best? PX Unit

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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