A company produces widgets at plants 1 and 2. It costs 135x1/2 dollars to produce x units at plant 1 and 260x1/3 dollars to produce x units at plant 2. Each plant can produce up to 1,000 units. Each unit produced can be sold for $12. At most 1,700 widgets can be sold. Determine how the company can maximize its profit.
Answer
As higher the production the lower is its cubic root so plant two
will produce 1000 quantity and plant 1 will produce remaining (700
units)
so
TC=135*(700)^(1\2)+260*(1000)^(1\3)
=3571.77+2599.99
=6171.76
TR=12*1700
= 20400
Profit = 20400-6171.76
=14228.24
so It will maximize profit by producing maximum quantity from plant 2 and minimum quantity from plant 1.
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