About both production and transportation costs

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Reference no: EM131196994

Frims A and B are selling a homogenous product and are located 900 mile apart. The production cost per unit of output for firms A and B are $60 and $60. The transport costs per unit of output per mile for firms A and B are $2 and $2. How many miles from firm A's location is the market area boundary? Explain your answer in terms of Firm A and Firm B relative costs of production and transportation. One or Two sentence answer. Make a statement about both production and transportation costs.

Reference no: EM131196994

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About both production and transportation costs : Frims A and B are selling a homogenous product and are located 900 mile apart. The production cost per unit of output for firms A and B are $60 and $60. Explain your answer in terms of Firm A and Firm B relative costs of production and transportation..

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