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Solved Discuss How The Examples in The Opening Case Show How

The examples in the opening case show that firms facing long-run decisions on plant location have greater choices than firms with existing plants. These choices include factors like the availability of labor, transportation costs of inputs and outputs, proximity to customers or suppliers, and local taxes. Industry studies often show that some firms experience economies of scale over a range of output, while their costs remain constant over a wide range, and costs may rise at very high output levels. A company with plants in both the US and Mexico is unlikely to have the same cost-minimizing factor mix in both locations due to differences in relative factor prices between the two countries.

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29 views

Solved Discuss How The Examples in The Opening Case Show How

The examples in the opening case show that firms facing long-run decisions on plant location have greater choices than firms with existing plants. These choices include factors like the availability of labor, transportation costs of inputs and outputs, proximity to customers or suppliers, and local taxes. Industry studies often show that some firms experience economies of scale over a range of output, while their costs remain constant over a wide range, and costs may rise at very high output levels. A company with plants in both the US and Mexico is unlikely to have the same cost-minimizing factor mix in both locations due to differences in relative factor prices between the two countries.

Uploaded by

M Bilal Saleem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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(SOLVED) Discuss how the examples in the opening case

show how
Discuss how the examples in the opening case show how Discuss how the examples in the
opening case show how the choices facing a firm making a long-run decision on plant location
are much greater than those for a firm with a plant already in operation. Why is the long […]

Appendix Exercise For each of the following technologies graph a Appendix Exercise] For each
of the following technologies, graph a representative set of isoquants: a. Every worker requires
exactly one machine to work with; no substitution is possible. b. Capital and labor are perfect
substitutes. c. The firm is able […]

Industry studies often suggest that firms may have long run average Industry studies often
suggest that firms may have long-run average cost curves that show some output range over
which there are economies of scale and a wide range of output over which long-run average
cost is constant; finally, at […]

A company operates plants in both the United States where A company operates plants in both
the United States (where capital is relatively cheap and labor is relatively expensive) and
Mexico (where labor is relatively cheap and capital is relatively expensive). a. Why is it unlikely
that the cost-minimizing factor […]

GET ANSWER- https://accanswer.com/downloads/page/3504/

Consider the shape of the production and cost functions for Consider the shape of the
production and cost functions for two different firms. a. FOR firm 1, workers have constant
marginal product. that is, each worker produces exactly the same amount as the previous
worker. use this information to graph […]

Jill resigns from her job at which she was earning Jill resigns from her job, at which she was
earning $50,000 per year, and uses her $100,000 savings, on which she was earning 5 percent
interest, to start a business. In the first year, she earns revenue of $150,000, and […]

Jim is considering quitting his job and using his savings Jim is considering quitting his job and
using his savings to start a small business. He expects that his costs will consist of a lease on
the building. Inventory, wages for two workers, electricity,and insurance. a. Identify which costs
are […]

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