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Business, 07.03.2020 00:13 eshaesmot12345

Locations of Transfer-Oriented Firms Assume the distance between the resource (R ) and the market (M) is 10 miles. A firm’s procurement cost is given by PC=x2, where x is the distance from the resource measured in miles. The firm’s distribution cost is given by DC=100-0.5x2. Again, x is the distance from the resource. (a) What is the Total Freight Cost at each milestone (i. e., x=1, 2, 3, …). 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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Locations of Transfer-Oriented Firms Assume the distance between the resource (R ) and the market (M...
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