Stark Industrial Machinery (near Charleston, South Carolina)…
Stark Industrial Machinery (near Charleston, South Carolina) and Lannister Equipment (located near Las Vegas, Nevada) both sell generators to industrial machine shops. While customers exist throughout the 3000 miles (roughly) between the two firms, most customers may be found around the Mississippi river. Stark’s production costs are $800 per unit, with transportation costs of $70 per unit per mile. Lannister’s production and transportation costs, respectively, are $820 per unit, and $65 per unit per mile. What is Lannister’s extent of market? (round x up to the nearest mile).
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