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ALVIMA food complex PLC is producing MAWEL pasta (X1) and PRIMA macaroni (X2). The firm's manager is interested to minimize the total cost of production while she is at the same time interested in producing 36,000 tons/week of X1 and X2 that use same raw materials. Given that the firm has the following Total Cost (TC) function/week: TC = 2000x2 - 1000xy + 3000y2
Problem i. Determine the combinations of X1 and X2 that will minimize the TC of ALVIMA food complex PLC
Problem ii. Find out the TC of producing X1 and X2
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