B C Four cities (A,B,C and D} with widget consumption =100 widgets in each. Can have four factories, one in each city, with each factory producing 100 widgets. Or can have a single factory in the centrally located city, D, producing 400 widgets. The shipping cost per widget from D to any of the three other cities is $2. Widget production exhibits economies of scale, with the average cost per widget in a factory falling from S4 at an output of 100 to $3 at an output of 400. What is the total cost (production + shipping) of centralized production? AC\" N + 34* N*T=$3*400+3/4*400*$2=$1200+5600=$1800 What is the total cost (production + shipping) of decentralized production? AC"I N=$4*4OD=$ 1600. Which system is more efficient? Decentralized since $1600