Giant Motor Company

Question

Plant characteristics
Lyra Libra Hydra New Lyra New Libra
Capacity (in millions) 1 0.8 0.9 1.6 1.8
Fixed cost (in $billions) 2 2 2.6 3.4 3.7

Profit margin (in $1000s) per car (large negative numbers mean the plant can't make that car)
Lyra Libra Hydra New Lyra New Libra
Lyra 2 -100 -100 2.5 2.3
Libra -100 3 -100 3 3.5
Hydra -100 -100 5 -100 4.8

Demand (in millions)
Lyra 1.4
Libra 1.1
Hydra 0.8

Demand diversion matrix (from along side, to along top)
Lyra Libra Hydra
Lyra NA 0.3 0.05
Libra 0 NA 0.1
Hydra 0 0 NA