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There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $14,000 per mile to set up.
Instructions: Enter your answers as whole numbers.
a. How much would it cost to fence a single property whose area is one square mile if that property also happens to be perfectly square, with sides that are each one mile long? $____. b. How much would it cost to fence exactly four such properties, which together would contain four square miles of area? $____. c. Now, consider how much it would cost to fence in four square miles of ranch land if, instead, it comes as a single large square that is two miles long on each side. $____. d. Which is more costly—fencing in the four, one-square-mile properties or the single four-square-mile property? _______
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