a. To produce 180 surfboards a week, is it efficient to operate one or two plants? b.

Question:

a. To produce 180 surfboards a week, is it efficient to operate one or two plants?
b. To produce 160 surfboards a week, is it efficient for Sue’s to operate one or two plants?
Sue’s Surfboards buys a second plant and the output produced by each worker increases by 50 percent. The total fixed cost of operating each plant is $1,000 a week. Each worker is paid $500 a week.