Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started