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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