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1 . ?A Utility company with 2 ?plants ( 1 5 ?points ) ?Recall that in Unit 2 ?we also had the following extension of

1 . ?A Utility company with 2 ?plants ( 1 5 ?points ) ?Recall that in Unit 2 ?we also had the following extension of the one - plant Utility Company problem: Suppose that the Utility Company is considering the possibility of building a second ( more efficient ) ?plant. Specifically, the cost of its existing plant, now called Plant 1 , ?and the cost of the new plant, now called Plant 2 , ?are given below: Plant 1 1 0 , 0 5 0 + 5 Q 2 2 ?Plant 2 5 , 0 0 0 + 2 Q , ?where Q , ?and Q , ?denote the respective kilowatts produced at the respective plants. Thus, Q = ?Q , + Q , ?What are the optimal production levels and optimal profit level? Hint: See Unit 6 ?Practice Problem # 1 ?& 2 ( a ) ?Formulate as an algebraic optimization model. ( Submit copy of Handwritten answer, 5 ?pts ) ( b ) ?Create Excel model using your model from part ( a ) . ( Submit answer in an Excel file, 5 ?pts ) ( c ) ?Then solve for the optimal output levels and optimal profit. ( Submit answer in an Excel file, 5 ?pts )

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