Question

2. End of Line The city of Frisco lies at the western end of a rail line. To the east are a hundred miles of wide plains along which there are several towns-all connected to Frisco by the rail line. To the west of Frisco are fifty miles of mountains, whose small villages are connected by a few winding dirt roads. The only factory in the region is in Frisco. It produces widgets at a cost of $20 per unit at the factory door. Thanks to the mountains, the transport costs to anywhere west of Frisco is $0.50 per mile a. Graph the costs of widgets produced throughout the entire 150-mile region. Carefully label the costs at the factory, at the far western end of the region, and at the far eastern end of the region. Cost (in S) - west Frisco east b. Assume that the cost of making a widget at home is $28. What is the market area for the factory? That is, hovw many miles west of Fisco will it stretch and how many miles east of Frisco mllit stretch) Showrour поп.

Answer 1