/raming and marginaI eost Retum to the setting of frames [1'] and [II'] in the text where factor ZI was fixed at 12,000. Suppose this implies factor Z3 is "80% fixed" in the sense ~ is fixed at

.8(2)(12,000) = 19,200 and additional acquisition of this factor must satisfy a lower bound of .2(2ql + 4'12) if production of ql and q2 is to be feasible. (Think of this as some of the ~ consumption vari es with ZI' and the remainder with output.) So the last constraint in [1'] should read Z3 '" .2(2ql + 4'12) instead of ~ '" 2ql + 4'12. Locate an optimal production plan, using each of the three frames. Summarize your cost ca1culations in a table similar to Table 12.1.

AppendixLO1