A Company Is Deciding Where to Locate a New Warehouse

question 8

Multiple Choice

A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1,2,and 3.The locations of the suppliers (xi,yi) and the annual number of shipments from supplier i (Wi) are provided below: The coordinates for the new warehouse suggested by the center of gravity method are

• A)x = 311.4 and y = 309.4
• B)x = 309.4 and y = 311.4
• C)x = 291.2 and y =198.9
• D)x = 193.2 and y = 219.4

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Definitions:

Marginal Costs

The excess cost involved in producing one more unit of a good or service.

Demand for Wine

The desire or consumers' willingness to purchase wine at a given price level.

Cournot Duopolists

Refers to a market structure where two firms compete with each other by independently choosing production levels to maximize profit, assuming the other's output level as given.

Imports

Products or services imported from foreign countries for the purpose of sale.