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An electronic company produces 3 different electronic devices in California and in Zhengzhou, Henan province, in China. The following matrix gives the labor hour per unit of each device in California and China. Assume the labor costs, on the average, is $20 per hour in California and $5 per hour in China.

Labor Hour per Device

 

Location

 

Dev. 1

 

Dev. 2

 

Dev. 3

California

0.10

0.08

0.05

China

0.30

0.20

0.10

(a) Write a matrix expression to calculate the labor cost of producing each device in California and China.

(b) Write a matrix expression to calculate the average labor cost of producing these devices in California and China.

 

Microeconomics, Economics

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