Dwr has two facilities at which it produces its reid


DWR has two facilities at which it produces its Reid couches. At facility 1, the marginal cost of production is equal to MC1 = 1,200 + 4 Q1 , while the marginal cost at facility 2 is MC2 = 1,600 + 6 Q2 . The fixed cost is the same at both facilities. DWR plans to produce 175 couches and it wants to allocate them between the two plants in a cost minimizing fashion. Thus, DWR should

  • Produce 152 at facility 1 and the rest at facility 2
  • Produce 28 at facility 1 and the rest at facility 2
  • Produce all the tables at facility 1
  • None of the above

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Macroeconomics: Dwr has two facilities at which it produces its reid
Reference No:- TGS01482052

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