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(1) Suppose the cost per widget varies with output as follows: cost is $4 if factory output is 100 widgets; cost is $1 if factory

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(1) Suppose the cost per widget varies with output as follows: cost is $4 if factory output is 100 widgets; cost is $1 if factory output is 400 widgets. In this situation, find the best arrangement of production for the firm (that is, either one central factory of four separately located smaller factories}. The best argument leads to the lowest total cost for the firm, where the total is the sum of production and shipping cost

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