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

The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:

The fixed and variable costs for three potential manufacturing p

(a) Over what range of production is each location optimal?
(b) For a production of 200 units, which site isbest?

Site Fixed Cost per Year Variable Cost per Unit $11 $ 500 1,000 1,700 4

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