1. Again, assume the company still needs the same level of production as in letter c. The CEO is still frustrated by the high wages in California and wants to concentrate all production in Indiana. If it moves to Plant Size B, can it do this? Why or why not?

1. Is letter e a short-run question or a long-run question?How do you know?Plant Size B

Indiana Plant California

Quantity of workers Total Supplements Quantity of Workers Total Supplements

0 0 0 0

1 10000 1 11000

2 24000 2 45000

3 40000 3 65000

4 54000 4 76000

5 64000 5 94000

6 72000 6 100000

7 76000 7 90000