Question
The company decides to open another factory. It receives 4,500 pounds of maize a week, and they would like to know how it should divide
The company decides to open another factory. It receives 4,500 pounds of maize a week, and they would like to know how it should divide its supply of ground corn between the two factories. Its objective is to maximize the total output. The company has the following production functions for tortillas:
Qold= 580GCold -.77GC2old
Qnew=550GCnew -.20GC2new
GCold and GCnew. are measured in 100lbs. How much corn should be allocated to each factory?
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
