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Micron is planning to construct a new semiconductor fabrication plant. They are considering three locations in Upstate New York: Albany, Syracuse, and Buffalo. The fixed
Micron is planning to construct a new semiconductor fabrication plant. They are considering three locations in Upstate New York: Albany, Syracuse, and Buffalo. The fixed and variable costs for each of these facilities are as follows:
Albany: $ fixed cost and $ per unit variable cost
Syracuse: $ fixed cost and $ per unit variable cost
Buffalo: $ fixed cost and $ per unit variable cost
Which of the following statements is are true?
I. The point of indifference between Albany and Syracuse is units.
II The total cost of Albany at units is $
III. At units, Syracuse is the lowestcost option.
Question options:
I, II and III
I and II
I and III
III only
II only
II and III
I only
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