Business, 27.12.2019 03:31, lee9724

Alternative a would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and variable costs would be $500 per boat. subcontracting would involve a cost per boat of $2,500, and expansion would require an annual fixed cost of $50,000 and a variable cost of $1,000 per boat. question: at what level of output will location b yield its lowest total cost.

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Alternative a would involve substantial fixed but relatively low variable costs: fixed costs would...