5.11 a) Suppose that currently QUEPAP is operating at 65% of capacity utilization and management does not expect to rise significantly in the near-term. Suppose a Chinese state trading company makes it an offer to purchase 100,000 tons at a price of $525 per unit. Would you recommend that management accept or reject the offer. Explain why? b) Suppose that the White River plant's cost function is TC = 275,000,000 + 400Q while the Val d'Or plant's cost function is TC = 225,000,000 + 400Q. Both plants are presently operating below their normal production capacity. If the demand for newsprint increases by 100,000 tons, at which of the two plants would it be most economical to produce the additional output? Explain your reasoning and back up your answer with figures