The Calcio Coal Company produces coal at four mines and ships it to four power plants (P1-P4). The cost per ton of producing coal and the production capacity (in tons) for each mine are known. The number of tons of coal demanded by each customer is also known. The cost (in dollars) of shipping a ton of coal from a mine to each plant is available as well. The following table provides the data:MineP1P2P3P4CapacityCost191581012550271514121005735511121505543681112061Demand110115135130 Problem 1: Transporting CoalUsing the strategy that minimizes cost, how many tons of coal are shipped from Mine 4 to P1?

The Minimum Cost Method:Start with the cell with the lowest cost. If there are multiple cells with…

Answered: The Calcio Coal Company produces coal…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Calcio Coal Company produces coal at four mines and ships it to four power plants (P1-P4). The cost per ton of producing coal and the production capacity (in tons) for each mine are known. The number of tons of coal demanded by each customer is also known. The cost (in dollars) of shipping a ton of coal from a mine to each plant is available as well. The following table provides the data: