Exercise 1.2-1.jpg

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

• Homework Help
• 1

This preview shows page 1 out of 1 page.

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...
View Full Document

• Fall '16
• Economics, Total cost of production, total avg cast

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern