The Ace Manufacturing Company has orders for three similar products: Product Orders (units)
A 2000
B 500
C 1200

Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are as follows:

Machine Capacity Product
1 1500
2 1500
3 1000

Machine Product
A B C

1 $1.00 $1.20 $ .90
2 $1.30 $1.40 $1.20
3 $1.10 $1.00 $1.20

Required:
Use the transportation model to develop the minimum cost production schedule for the products and machines. Show the linear programming formulation.

decentralization can the employees to get more involved in the business decision making

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.