There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $11,000 per mile to set up. Instructions: Enter your answers as whole numbers. a. How much would it cost to fence a single property whose area is one square mile if that property also happens to be perfectly square, with sides that are each one mile long? b. How much would it cost to fence exactly four such properties separately, which together would contain four square miles of area? c. Now, consider how much it would cost to fence in four square miles of ranch land if, instead, it comes as a single large square that is two miles long on each side.

There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $11,000 per mile to set up. Instructions: Enter your answers as whole numbers. a. How much would it cost to fence a single property whose area is one square mile if that property also happens to be perfectly square, with sides that are each one mile long? b. How much would it cost to fence exactly four such properties separately, which together would contain four square miles of area? c. Now, consider how much it would cost to fence in four square miles of ranch land if, instead, it comes as a single large square that is two miles long on each side.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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