3. EFC Corporation, which manufactures goods at three locations at D, E, F. The firm distributes the goods through regional were-house located at A, B, C. The firm has found that production costs per good are identical for each factory, and hence the only relevant costs are those of shipping from each factory (D, E and F) to each destination (A, B and C). Assume the cost constant regardless of the volume shipped. Table below shows supply, demand and cost for a unit of transportation. Transport Table for EFC Corporation To From D E A 2 4 B 4 3 C 5 2 Factory Capacity (SS) 350 350

3. EFC Corporation, which manufactures goods at three locations at D, E, F. The firm distributes the goods through regional were-house located at A, B, C. The firm has found that production costs per good are identical for each factory, and hence the only relevant costs are those of shipping from each factory (D, E and F) to each destination (A, B and C). Assume the cost constant regardless of the volume shipped. Table below shows supply, demand and cost for a unit of transportation. Transport Table for EFC Corporation To From D E A 2 4 B 4 3 C 5 2 Factory Capacity (SS) 350 350

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problem #1: Assume that the following marginal costs exist in catfish production: 17 Quantity Produced (units per day) Marginal Cost (per unit) 10 11 12 13 14 15 16 $4 6 8 10 12 14 16 18 (a) Graph the MC curve. (b) Use the data on market demand below and graph the demand and MR curves on the same graph. Quantity demanded (units per day) 10 Price (per unit) 11 12 13 14 15 16 17 $25 24 23 22 21 20 19 18 (c) At what rate of output is MR = MC?
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