Explain what level of per km input transportation cost, Macroeconomics

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Explain what level of per km input transportation cost

Assume that 5 units of input are required to form 1 unit of output and that the input mine is located the 40 kilometers away from the market. Moreover, per kilometer output transportation cost is $12. Explain what level of per km input transportation cost would make an investor indifferent among locating a firm at the mine or at the market?

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Macroeconomics: Explain what level of per km input transportation cost

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Macroeconomics: Explain what level of per km input transportation cost

Reference No:- TGS0870494

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Recent Questions Asked Macroeconomics

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Ask an Expert for Answer!!

Macroeconomics: Explain what level of per km input transportation cost

Reference No:- TGS0870494

Recent Questions Asked Macroeconomics

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