A power company in Missouri can buy coal for its generating plants from western mines in Utah

Question:

A power company in Missouri can buy coal for its generating plants from western mines in Utah or from eastern mines in Pennsylvania. The maximum purchase price for coal of $20 per ton at the Missouri plant is set according to the price of competing energy forms. The cost to mine coal in the West is $17 per ton and in the East is $15 per ton. Transportation cost from the eastern mines is $3 per ton. What is the value of transportation from the western mines?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: