The following table shows the fixed cost and variable cost for 3 locations. Construct cost curves for these 3 locations for production from 0 to 200 units at 20 units intervals. What would be the range of production units that would give Location A a competitive advantage? What would be the range for Location B and Location C, respectively?

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Chapter19: Pricing Concepts
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Problem 6DRQ
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The following table shows the fixed cost and variable cost for 3 locations. Construct cost curves for these 3 locations for production from 0 to 200 units at 20 units intervals. What would be the range of production units that would give Location A a competitive advantage? What would be the range for Location B and Location C, respectively?

A
B
C
Variable Cost
5,000
3,000
1,500
Fixed Cost
2,000
7,500
15,000
Transcribed Image Text:A B C Variable Cost 5,000 3,000 1,500 Fixed Cost 2,000 7,500 15,000
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