Question: Q2. The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown. Over what range of production is

Q2. The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown. Over what range of production is each location optimal? [6 marks]

Site

Fixed cost per year

Variable cost per unit

1

$1000

$10

2

$1500

$8

3

$2000

$6

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