A privately-operated recycling recovery facility can purchase MSW (municipal solid wastes) from two towns, separate newsprint and computer paper, and sell it. Household and commercial business surveys show that the composition and supply of MSW are:

The company will offer the towns a price of $35 per ton of MSW. It will sign contracts with each town to ensure that it will receive the optimum amount of material to maximize its profit. The company seeks to determine how much MSW it should purchase from each town.

To remain in business the company must collect at least 1,500 tons of computer paper per year. When the supply of newsprint becomes too large the price that the company receives will fall. To gain maximum market price the company will sell no more than 6,000 tons of newsprint per year.

How much computer paper and newsprint should the company purchase from each town?

Transcribed Image Text:

Available SW Supply (tons/year) 10,000 20,000 Computer Paper Newsprint Town 1 5% 20% Town 2 15% 30% Available SW Supply (tons/year) 10,000 20,000 Computer Paper Newsprint Town 1 5% 20% Town 2 15% 30%

Answer rating: 100% (QA)

Solution Do not buy waste in town ... View the full answer