Welcome on board to Blended, Inc. As you know we are one of the nation's elite producers of multi-purpose kitchen blenders. I would like you
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Welcome on board to Blended, Inc. As you know we are one of the nation's elite producers of multi-purpose kitchen blenders. I would like you to think about optimal production levels in our two plants to maximize our profits. Our first plant has the following daily cost structure: C1 = 50 + 0.1Q12 and our second plant has the following daily cost structure: C2 = 30 + 0.05Q22. Furthermore, our sales team has informed me that our daily demand function takes the following form: Q = 800 - 10P. Give me a recommendation on what daily production levels should be in each plant, and also recommend a price point for us to hit our sales target? (Hint: The firm is a profit maximizing firm, you need to provide the supply decision in both plants that maximizes profit.)
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Alright lets tackle this stepbystep to find the optimal production levels and the price point for Blended Inc Step 1 Define the variables C1 50 01Q12 ... View full answer

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