The remaining questions use the basic warehouse location model with the same spreadsheet shown in each of the questions and based on the following problem. A local manufacturer has three shops in different locations on campus and wants to determine the optimal location for a single warehouse. The location is to be based on minimizing the total weighted grid distance from each of the three shops, where the weights are represented by the number of trips from the warehouse to a particular shop. The initial proposed location is given on the chart.

Learning economies differ from economies of scale because

Suppose the wage rate is $25 per hour and the rent on capital is $50 per hour. An equation for the firm’s isocost line is given by:

Refer to the following figure. Suppose that the firm is currently producing 200 units at the lowest possible cost. If the firm wants to increase its output to 300 units, but its capital is fixed at 15 units, how much is its short-run cost-distortion if the price per unit of labor equals $25 and the price per unit of capital equals $50?

Refer to the following figure. Suppose that the firm is currently producing 200 units at the lowest possible cost. What is the optimal input combination?

Your manager wants you to collect date to analyze the firm’s efficiency and cost. The data collected suggest that = 150, and = 100. It also known that w = $15 and r = $20. Based on this information, why is the firm not minimizing cost?

Given the above graph, as you move from input combination A to input combination C,

The slope of an isoquant is

The expansion path

Economies of scope in the production of goods G and W exist if