QUESTION 21. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plantin the coming year. He has four locations in mind. The costs information for these locations is inthe following table.a.LocationsFixed CostsVariable Costs/unitA60,00030B80,00020с100,00015D130,00010i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000,4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?

Introduction Total cost is the total amount of expenditures a business incurs to produce a…

QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. a. Locations Fixed Costs Variable Costs/unit A 60,000 30 B 80,000 20 C 100,000 15 Ꭰ 130,000 10

QUESTION 2 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. a. Locations Fixed Costs Variable Costs/unit A 60,000 30 B 80,000 20 C 100,000 15 Ꭰ 130,000 10

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

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