Mathematics, 04.10.2019 20:20 Jennifer2019
Assume the distance between the resource (r ) and the market (m) is 10 miles. a firm’s procurement cost is given by pc=0.5x2 , where x is the distance from the resource measured in miles. the firm’s distribution cost is given by dc=100-0.5x. again, x is the distance from the resource. (a) what is the total freight cost at each milestone (i. e., x=0, 1, 2, 3, …10). where should the firm locate? (b) how does your answer to all parts under (a) change if the marginal procurement cost were equal to zero?
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Assume the distance between the resource (r ) and the market (m) is 10 miles. a firm’s procurement c...
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