Exercise 1.2-1.jpg - Exercise 1 2 97 case I total avg cast...

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Unformatted text preview: Exercise 1 . 2 97 . case I - total avg cast: can't per unit + shipping = O Case 2 - total arg cast : can't per unit + shipping in Case I has a lower arg cost. Total cost of production in 1/200 ( $ 3 X 400 ) O Case / - total arg cost = cost per unit + shipping He D Case 2 - total ary cost = cost per whit + shipping m " + 2 1 1 Case I has a lower arg cost. Total cost of production at each firm is " HOO ( ` * 100 ) C . In question a , `, firms benefit from economies of scale. Goods are centrally produced at one location. Because_ ary production is $ 7 and shipping in " a, total cost of production in |}3 which is less than In question to , firms benefit from no transportation cost. Goods. are produced at different locations bringing for` the total cost of production to 1 5 , which is higher than...
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  • Fall '16
  • Economics, Total cost of production, total avg cast

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