A Major Computer Manufacturer Is Interested in Establishing a Customer

question 60

Essay

A major computer manufacturer is interested in establishing a customer service center to handle business for the next decade.They conduct exhaustive research on land and construction costs,utilities,tax breaks,and wages at three sites,Oklahoma City,Austin,and Nashville.Answer these questions using these costs as displayed in the table below.
Graph the total cost curves and indicate the range of output that is best for each prospective site.What are the assumptions you have made in this analysis?

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Definitions:

Long-Run Supply Curve

A curve showing the relationship between the price of a good and the quantity supplied over a period long enough for firms to enter or exit the market.

Perfectly Elastic

Refers to a situation in economic theory where a small change in price leads to an infinite quantity demanded or supplied.

Increasing-Cost Industry

An industry in which the cost of production per unit increases as the total output of the industry increases, typically due to resource limitations or regulatory costs.

Consumer Demand

It refers to the desire of consumers to purchase goods and services, combined with their purchasing power, at a given price level and time.