Gce Model Questions Vol1 2025 Geography Question 2
Practice objective / multiple choice question 2 from the 2025 Gce Model Questions Vol1 Geography examination.
A manufacturing firm is choosing between two possible sites. Site A has a fixed capital cost of £2.5 million, a variable production cost of £12 per unit and is 80 km from the main market. Site B has a fixed capital cost of £1.8 million, a variable production cost of £14 per unit and is 150 km from the market. Transport cost is £0.05 per unit per kilometre. If the firm expects to produce \(Q\) units per year, for what range of \(Q\) will the total annual cost at Site A be lower than at Site B? Express the minimum integer value of \(Q\) that makes Site A cheaper.
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About This Question
This is Gce Model Questions Vol1 2025 Geography Question 2. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Geography examination.
Difficulty level: Hard .
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