Question:The Return of Detroit City: Enpar manufactures engine parts
for Ford using steel as an input....
Question
The Return of Detroit City: Enpar manufactures engine parts
for Ford using steel as an input....
The Return of Detroit City: Enpar manufactures engine parts
for Ford using steel as an input. Enpar operates two plants, one in
Detroit, MI and one in Greenville, SC. The production functions for
the two Enpar plants are:
Detroit:
QD= 22SD – 0.25 SD2
Greenville:
QG= 56SG – 0.5 SG2
where QD and QG are the outputs of engine parts (in units)
from the Detroit and Greenville plants, respectively. SD and SG are
the amounts of steel for the two plants. The firm has 195 units of
steel available.