A Firm Has Two Plants, X and Y

question 28

Multiple Choice

A firm has two plants, X and Y. Suppose that the cost of producing x units at plant X is dollars and the cost of producing y units of the same product at plant Y is given by dollars. If the firm has an order for 3,000 units, how many should it produce at each plant to fill this order and minimize the cost of production? ​

• A)1,500 at plant X; 1,500 at plant Y
• B)2,500 at plant X; 500 at plant Y
• C)1,000 at plant X; 2,000 at plant Y
• D)3,000 at plant X; 0 at plant Y
• E)2,000 at plant X; 1,000 at plant Y

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Definitions:

Employee Empowerment

A management philosophy that emphasizes giving employees the authority, tools, and information to make decisions and take responsibility for their actions in the workplace.

Non-Management Employees

Workers within an organization who do not have supervisory or managerial responsibilities, often focusing on specific operational tasks.

Pay Increases

Adjustments made to an employee's salary to reward performance, match market rates, or adjust for cost of living.