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king tech is ready to begin production of its existing new technology. the company is evaluating 3 of production: a . a small production facility
king tech is ready to begin production of its existing new technology. the company is evaluating of production:
a a small production facility with older equipment
b a large production facility that is more automated
c subcontracting to an electronics manufacturer in nigeria.
the cost of each alternative is shown below.
process A BC
fixed cost
vaiable cost
i formulate the total cost function for each process
ii for each cost function in i above, determine total cost values corresponding to volumes and
iii plot the cost curves on the same axis
iv for what levels of demand should each process be chosen
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