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What is the competitive price of a utility meter

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Question - Demand for concave utility meters is expanding rapidly, but the industry is highly competitive. A utility meter plant costs $40 million to set up, and it has an annual capacity of 440,000 meters. The production cost is $8 per meter, and this cost is not expected to change. The machines have an indefinite physical life and the cost of capital is 11%. What is the competitive price of a utility meter?

Reference no: EM133163036

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