Explain why does not just one state produce all of orange

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The marginal and average cost curves are alike in shape among the three orange juice processing firms located in California, Texas, and Florida, but the costs are lower in some states than in others. Why? If this is true, why does not just one state produce all of the orange juice for the U.S. market? Can you answer this question without the simulation.

Reference no: EM1363498

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