Question
You are the manager of two plants (factories) in Mexico that manufacture shoes. The combined monthly output of both plants is to be 10,000 pairs
You are the manager of two plants (factories) in Mexico that manufacture shoes. The combined monthly output of both plants is to be 10,000 pairs of shoes. In at most one page, explain, how you would best divide this output of 10,000 pairs of shoes between the two plants. You may make your arguments in words with the aid of diagrams, i.e., without the use of math. On the other hand, if you are comfortable with math (calculus), the following additional information may be made use of by you. The cost function of Plant 1 is C1= a0+ a1Q1+ a2Q12+ a3Q13and that of Plant 2 is C2= b0+ b1Q2+ b2Q22+ b3Q23, where Q1and Q2denote, respectively, the outputs of Plant 1 and Plant 2. PLEASE HELP ME UNDERSTAND TOBEST DIVIDE THIS OUTPUT OF 10,000 PAIRS OF SHOES BETWEEN THE TWO PLANTS. THANK YOU
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