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A pharmaceutical company produces a drug from four chemicals.Today the company must produce 1000 pounds of the drug.The three active ingredients in the drug are labeled A,B,and C.By weight,at least 8% of the drug must consist of A,at least 4% must consist of B,and at least 2% must consist of C.The cost per pound of each chemical and the amount of each active ingredient in 1 pound of each chemical are given below.It is necessary that at least 100 pounds of chemical 2 be used. Determine the cheapest way of producing today's batch of this drug.
Total Revenue
The total income generated by a company from the sale of goods or services before any expenses are subtracted.
Economies of Scale
Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.
Decreasing Marginal Product
A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.
Total Cost Curve
A graphical representation that illustrates how the total cost of producing a good changes in relation to the quantity produced, considering both fixed and variable costs.
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