Scenario: a Firm Wants to Set Up a Factory

question 33

Multiple Choice

Scenario: A firm wants to set up a factory. It has four different options. The rent of the factory in each of the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour.

-Refer to the scenario above.What is the marginal rent cost if the firm chooses factory Far over factory Very Far?

• A) $40
• B) $100
• C) $150
• D) −$150

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Definitions:

Uracil

(uracil) A nitrogenous pyrimidine base found in RNA.

Adenine

A purine nucleobase that pairs with thymine in DNA and uracil in RNA, essential for the structure of nucleic acids.

Thymine

A nitrogenous base found in DNA, pairing with adenine through two hydrogen bonds to assist in stabilizing the nucleic acid structures.

Citrulline

An amino acid that plays a significant role in the urea cycle, helping to eliminate ammonia from the body.