Weight Gaining Industry:

Example: soft drink production

· One ton of sugar produces 4 tons of soda

· Other inputs found everywhere

Monetary Weights

	Input (sugar)	Output (beverage)
Physical weight (tons)	1	4
Transport Cost (cost per ton per mile	$1	$1
Monetary Weight (physical weight times rate)	$1	$4

DC = w_o∙t_o∙(X_M-X) PC = w_i∙t_i∙X

X	PC	DC	TTC
0
2
4
6
8
10