DWR has two facilities at which it produces its Reid couches. At facility 1, the marginal cost of production is equal to MC1 = 1,200 + 4 Q1 , while the marginal cost at facility 2 is MC2 = 1,600 + 6 Q2 . The fixed cost is the same at both facilities. DWR plans to produce 175 couches and it wants to allocate them between the two plants in a cost minimizing fashion. Thus, DWR should
- Produce 152 at facility 1 and the rest at facility 2
- Produce 28 at facility 1 and the rest at facility 2
- Produce all the tables at facility 1
- None of the above