A Manufacturing Firm Is Considering Two Locations for a Plant

question 68

Multiple Choice

A manufacturing firm is considering two locations for a plant to produce a new product.The two locations have fixed and variable costs as follows: If the annual demand is 20,000 units,what would be the cost advantage of the better location?

• A)$20,000
• B)$460,000
• C)$480,000
• D)$80,000
• E)$60,000

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Definitions:

Photorespiration

A process in plant metabolism where oxygen is consumed and carbon dioxide is released, typically reducing the efficiency of photosynthesis.

C4 Plants

Plants that utilize the C4 carbon fixation pathway, enabling them to photosynthesize more efficiently in high light and temperature conditions than C3 plants.

CAM Plants

Plants that utilize Crassulacean Acid Metabolism, an adaptation for photosynthesis in arid conditions.

Organisms

Any contiguous living system, such as an animal, plant, fungus, archaeon, or bacterium.