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It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then L23K13 machines can be produced. Suppose the company has $10,000 to purchase labor and capital.
a. What is the maximum number of machines it canproduce?
b. Use SolverTable to see how a change in the price of labor changes the optimal solution.
c. Use SolverTable to see how a change in the price of capital changes the optimal solution.
d. Use SolverTable to see how a change in the amount of money available changes the optimal solution
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Identify the decision variables, objective function, and constraints in simple verbal statements.
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