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Producer A and Producer B are located 2 0 0 miles apart. Producer A has a production cost of $ 1 2 0 per unit
Producer A and Producer B are located miles apart. Producer A has a production cost of $ per unit and a transportation cost of $ per unit per mile. Producer B has a production cost of $ per unit and a transportation cost of $ per unit per mile. Find the market area for Producer B from its plant How far Producer B can move its products towards Producer A and still have a lower landed cost?
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