Scenario: A firm wants to set up a factory. It has four different options. The rent of the factory in each of the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour.

-Refer to the scenario above.Which is the optimum location for the firm to set up its factory?
A) Far
B) Very Far
C) Close
D) Very Close

Question

Scenario: A firm wants to set up a factory. It has four different options. The rent of the factory in each of the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour.
 
-Refer to the scenario above.Which is the optimum location for the firm to set up its factory?
A) Far 
B) Very Far 
C) Close 
D) Very Close

Quizplus · Accepted Answer

The Answer of Scenario: A firm wants to set up a factory. It has four different options. The rent of the factory in each of the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour.
 
-Refer to the scenario above.Which is the optimum location for the firm to set up its factory?
A) Far 
B) Very Far 
C) Close 
D) Very Close

Scenario: a Firm Wants to Set Up a Factory