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Elucidate what is value of transportation from western mines

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Q. A power Corporation in Missouri can buy coal for its generating plants from western mines in Utah or from eastern mines in Pennsylvania. Maximum purchase price for coal of $20 per ton at Missouri plant is set As per price of competing energy forms. Cost to mine coal in west is $17 per ton also in East is $15 per ton. Transportation cost from eastern mines is $3 per ton.

Elucidate what is value of transportation from western mines?

Reference no: EM1373313

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