A building contractor can source door frames from either a nearby shop or a far-off forest area. The cost details are summarized in the table below. The total requirement of wood for the construction work is 75 tons. Find the best alternative for buying the wooden frames. Also find the economic advantage of the best alternative. Items Distance to site 900 km Nearby Shop Far-off Forest Area Negligible Negligible $ 2,000 $100 Transportation cost per ton per km Material cost per ton $ 1,250

A building contractor can source door frames from either a nearby shop or a far-off forest area. The cost details are summarized in the table below. The total requirement of wood for the construction work is 75 tons. Find the best alternative for buying the wooden frames. Also find the economic advantage of the best alternative. Items Distance to site 900 km Nearby Shop Far-off Forest Area Negligible Negligible $ 2,000 $100 Transportation cost per ton per km Material cost per ton $ 1,250

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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