A consulting firm has just finished a study for a manufacturer of wine. It has determined that an additional man-hour of labor would increase wine output by 1,000 gallons per day. Adding another machine-hour of fermentation capacity would increase output by 200 gallons per day. The price of a man-hour of labor is $10 per hour. The price of a machine-hour of fermentation capacity is $0.25 per hour.
Is there a way for the wine manufacturer to lower its total costs of production and yet keep its output constant? If so, what is it?
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ask it separately........please
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