...8.18 Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new electric car bat- teries. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: SITE A B ANNUALIZED FIXED COST $10,000,000 $20,000,000 $25,000,000 VARIABLE COST PER BATTERY PRODUCED $2,500 $2,000 $1,000 The firm knows it will produce between 0 and 60,000 batteries at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) For what values of volume, V, of production, if any, is site Ca recommended site? b) What volume indicates site A is optimal? c) Over what range of volume is site B optimal? Why? PX

8.18 Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new electric car batteries. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: The firm knows it will produce between 0 and 60,000 batteries at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) For what values of volume, V, of production, if any, is site C a recommended site? b) What volume indicates site A is optimal? Over what range of volume is site B optimal? Why? PX