View Your World, a high-end window manufacturer, directly pays all of the transaction costs. The managers of View Your World are considering the profit-maximizing location for their plant. If locating the plant closer to its customers saves $10,000 in transportation costs of its windows to its customers, but causes an additional $7,500 in input transportation costs, View Your World ________
locate its plant closer to its customers as the marginal benefit is ________ than the marginal cost.
A) should not; less
B) should not; more
C) should; greater
D) should; less
C) should; greater
You might also like to view...
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will be shared by all three
Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?
This study was the catalyst for the early 20th century reform of medical education in the United States. What was it?
a. Coolidge Commission. b. Hill-Burton Committee. c. Mangrum Report. d. Flexner Report. e. Kaiser Foundation Study.
If product price decreases, then:
a. MP will increase. b. MFC will increase. c. MRP will increase. d. MRP will decrease.
One reason that explains why the short-run aggregate supply curve is upward sloping is:
A. sticky wages. B. cartels keeping prices artificially high. C. the lag involved with public policy making. D. the changing profit levels experienced by firms.