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1.Given you can sell as many of these screens as you want for $50 per screen, how many units to you want to produce in

1.Given you can sell as many of these screens as you want for $50 per screen, how many units to you want to produce in Malaysia?How many do you want to produce in Indonesia? What is the average variable cost in Malaysia?What is the average variable cost in Indonesia?Show your work

2.There is another major laptop manufacturer that says they will pay you $60 per screen.Without recalculating your answers to 1, how should you change your production in each plant?Which of the following are true (4 points):

a.You should increase output in both, but increase by more in Malaysia than in Indonesia.

b.You should increase output in both, but increase by more in Indonesia than in Malaysia.

c.You should increase both by exactly the same amount

Explain your answer below.

3.The Malaysian government imposes a tax on each screen produced in Malaysia.Without recalculating, how should you change your production in each plant, which of the following are true (4 points):

Malaysian Plant (circle one): IncreaseDecreaseKeep the same

Indonesian Plant (circle one): IncreaseDecreaseKeep the same

Explain your answers below.

4.Instead of the creating a more modern manufacturing plant in Indonesia, you could have built another plant very similar to the one in Malaysia (i.e., one with the same variable cost curve as your current plant in Malaysia), with a fixed monthly cost of $900,000.Should you have just built another plant like the one in Malaysia?Why or why not.Provide any values of certain variables that support you case. (8 points)

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