Econ 210 - Assn 2-1-2 - Econ 210 - Assn 2-1-2 Assignment...

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Econ 210 - Assn 2-1-2 Assignment 2-1-2 ECON 210
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Econ 210 - Assn 2-1-2 Dr Pepper Snapple Group Inc. - Cost Structure Dr Pepper Snapple Group Inc. is the distributor and bottler of Dr Pepper soda and Snapple drinks for North America, US, Canada, and Mexico, located in Plano, TX. The types of fixed costs Dr Pepper Snapple Group would have, some examples would be the factory/facility where they bottle the beverages, some fixed utility costs, fixed distribution rights for some of the products they sell, and maybe executive's salaries that are fixed. Some variable costs Dr Pepper Snapple Group would have labor would be a big one, as well as the raw materials to make and bottle the beverages, variable utility costs, trucking and shipping costs, advertising costs, and variable distribution rights. The biggest factors affecting their fixed costs would be the factory or facility where they bottle the beverages. The biggest factors affecting their variable costs would be their labor costs as well as the raw materials, used to manufacture the products. The average cost behavior in short-run differ from the long-run average costs because in the short-run, there are fixed costs, and in the long run, all the costs are variable. In a perfect market, Dr Pepper Snapple Group would produce at the minimum average total cost curve, but this is an imperfect market,
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Econ 210 - Assn 2-1-2 - Econ 210 - Assn 2-1-2 Assignment...

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