There Are Three Customer Locations with X- and Y-Coordinates of (0

question 113

Multiple Choice

There are three customer locations with x- and y-coordinates of (0, 0) , (4, 3) , and (1, 1) , respectively. The customers have a projected shipment volume of 12, 20, and 18, respectively. Using the center-of-gravity technique, what is the x-coordinate of a facility to serve these customers (to two decimal places) ?

• A) 1.96
• B) 1.56
• C) 1.67
• D) Cannot be determined from the information given

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Definitions:

Average Cost

The total cost of production divided by the quantity of output, representing the cost per unit of output.

Interest Rate

The cost of borrowing money or the return on investment, expressed as a percentage of the principal.

Market Price

The current price at which a good or service can be bought or sold, determined by supply and demand.

Diminishing Returns

A rule in economics that asserts once investments in a specific sector reach beyond a certain threshold, the returns on those investments will not keep rising if all other factors stay unchanged.