P3.7 Supply Curve Determination. Olympia Natural Resources, Inc., and Yakima Lumber, Ltd., supply cut logs (raw lumber)
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P3.7 Supply Curve Determination. Olympia Natural Resources, Inc., and Yakima Lumber, Ltd., supply cut logs (raw lumber) to lumber and paper mills located in the Cascades Mountain region in the state of Washington. Each company has a different marginal cost of production, depending on its own cost of landowner access, labor and other cutting costs, the distance cut logs must be shipped, and so on. The marginal cost of producing 1 unit of output, measured as 1000 board feet of lumber (where 1 board foot is 1 square foot of lumber, 1 inch thick),?
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