Question: A grain elevator is a facility that allows efficient scooping of grain from a vessel (boat, rail car), storing grain and distributing it to a




A grain elevator is a facility that allows efficient scooping of grain from a vessel (boat, rail car), storing grain and distributing it to a (different kind of ) vessel when necessary. The first steam-powered grain elevator was manufactured in 1843 in Buffalo, NY. Consider a simplified environment which reflects the choice of technology that Americans faced in the mid 19th century. The variable cost of transferring grain from a large vessel to a flatboat that is used on Erie canal is: - $20 per ton by a team of longshoremen - $10 per ton if a grain elevator is used However, there are also fixed costs of maintaining an elevator which are $200 per day.Calculate the average costs per ton (for every scale of operation) for each amount of grain (in tons) when manual labor of longshoremen is used and when a grain elevator is used. Fill in the following table. (5 pts)
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