Consider the Figure. There are two sources of supply: A and B. The market boundary occurs at Y where the LDC from A is the same as B. In the example shown in Figure the distance between A and B is 100...

From the figure, find the market boundary.

Extracted text: Consider the Figure. There are two sources of supply: A and B. The market boundary occurs at Y where the LDC from A is the same as B. In the example shown in Figure the distance between A and B is 100 miles. If we let the distance from A to Y be X miles, then the distance from B to Y is (100-X) miles. Assume supply A is the factory and supply B is a distribution center. Assume the product cost at A is $100 and product cost from B is $100 plus TL transportation from A to B and inventory costs at B. For this example, assume the TL transportation and inventory carrying costs are $10 per unit so the product cost from B is $110. Transportation costs from either A or B are $0.40 per unit per mile. Determine the Market Boundary? 100 Miles (100 – X) Miles Miles A Y