DWR has two facilities at which it produces its Reid couches. At facility 1, the marginal cost of production is equal to MC1 = 1,200 + 4 Q1 , while the marginal cost at facility 2 is MC2 = 1,600 + 6 Q2 . The fixed cost is the same at both facilities. DWR plans to produce 175 couches and it wants to allocate them between the two plants in a cost minimizing fashion. Thus, DWR should Produce 152 at facility 1 and the rest at facility 2 Produce 28 at facility 1 and the rest at facility 2 Produce all the tables at facility 1 None of the above<
DWR has two facilities at which it produces its Reid couches. At facility 1, the marginal cost of production is
equal to MC<sub>1</sub> = 1,200 + 4 Q<sub>1</sub> , while the marginal cost at facility 2 is MC<sub>2</sub> = 1,600 + 6 Q<sub>2</sub> . The fixed cost is the same at both facilities. DWR plans to produce 175 couches and it wants to allocate them between the two plants in a cost minimizing fashion. Thus, DWR should<table><tbody><tr><td> Produce 152 at facility 1 and the rest at facility 2 </td> </tr><tr><td> Produce 28 at facility 1 and the rest at facility 2 </td> </tr><tr><td> Produce all the tables at facility 1 </td> </tr><tr><td> None of the above<
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