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SMELTER COUNTRY COMPANY CAPACITY VARIABLE COST FIXED COST Sorocaba A Brazil Other 122 588 238 Zaporozhye Ukraine CIS 100 599 122 Grand Baie Canada Alcan

SMELTER COUNTRY COMPANY CAPACITY VARIABLE COST FIXED COST
Sorocaba A Brazil Other 122 588 238
Zaporozhye Ukraine CIS 100 599 122
Grand Baie Canada Alcan 180 602 269
Arvida 1 Canada Alcan 85 668 472
Alouette Canada Other 215 692 279
Irkutsk Russia CIS 260 712 126
Bratsk Russia CIS 850 757 138
Baie Comeau 1 Canada Reynolds 159 779 390
Boyne Island Australia Comalco 244 807 225
Sao Luis Brazil Other 357 875 226
Valco Ghana Kaiser 200 887 194
Badin B USA Alcoa 57.5 920 319
Hannibal USA Other 245 946 332
Sundsvall 1 Sweden Other 76.5 985 335
Lynemouth UK Alcan 130 1,024 308
Jebel Ali Dubai (UAE) State 245 1,061 88
Fushun 2 China State 450 1,166 97
Inota Hungary State 33.65 1,271 196
Korba India State 100 1,518 100
Renukoot B India State 30 2,070 110

If these were the only aluminum plants in the world, the most aluminum that could possibly be produced would be their total capacity: 4139.65 tons.

How should we start figuring out what goes onor what should go onin this market? Let's think about who would produce aluminum at a given price.

What if worldwide demand were 4000 tons - which would be the "last" plant that produces in this case?

Fushun 2

Fushun 2, together with all the plants with lower variable costs, would bring worldwide production to 3976 tons.

Inota

The plants with variable costs less than Inota's can produce only 3976 tons. Inota is the last, most expensive plant necessary to reach 4000 tons of production.

Korba

4000 tons can be produced even if only plants with lower variable costs than Korba's are in action.

Renukoot B

4000 tons can be produced even if only plants with lower variable costs than Renukoot B's are in action.

Please explain how the answer is INOTA . What was I supposed to add together to get to 4000.

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