Determine the daily amount and ipa, Macroeconomics

A brewery produces two kinds of beer, stout and IPA . Each batch of stout sells for $60 per unit while each batch of IPA sells for $108. Both products require malt, hops, barley, filtered water, and yeast, measured in physical "units" for convenience. Each batch of stout  uses 1 unit of malt, 1 unit of hops, 2 units of barley, 5 units of yeast, and 10 units of filtered water. The corresponding requirements for IPA are: 5 units malt, 2 units hops, 1 unit barley, 8 units yeast and 9 units water. On any given day, the brewery has on hand 150 units of malt, 90 units of hops, and 150 units of barley. The brewery pays $2 per unit for filtered water and $4 per unit of yeast.

  1. Solve the problem graphically to determine the daily amounts of stout and IPA that maximize the brewer's profits.
  2. State and solve the dual problem using the information you derived for the primal problem.
  3. Interpret the dual problem in terms of economics.

 

 

Posted Date: 3/7/2013 12:11:25 AM | Location : United States







Related Discussions:- Determine the daily amount and ipa, Assignment Help, Ask Question on Determine the daily amount and ipa, Get Answer, Expert's Help, Determine the daily amount and ipa Discussions

Write discussion on Determine the daily amount and ipa
Your posts are moderated
Related Questions
Public policies often alter the costs and benefits of private actions. Why is it important for policymakers to consider both the direct and indirect effects of public policies? Sel

Derive saving- investment recognize in the context of an open economy. From national income accounting shows that an enhance in taxes (whereas transfer unchanged) must imply a

I. Consider the following static optimization problem. Suppose that a consumer has financial wealth W and owns the house H¯ . She has utility over housing H and nonhousing co

Consider the following: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the l

A grocery store manager would like to have an idea concerning the average amount milk the store sells per day. In a sample of 70 days, the average amount number of gallons sold was

Singer suggests that although the right to sell blood does not threaten the formal right to give blood, it is incompatible with "the right to give blood, which cannot be bought, wh

The Stop decay company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decay fighter, redu

Suppose A can somehow change the game in problem 5.1 to a new one in which his payoff from Up is reduced by 2, producing the following payoff matrix. a. Find the Nash equilibriu

Macroeconomics usually deals with the behaviour of aggregates of economic variables. An economic variable is a magnitude whose value may changes. Important variables in macroeconom

THE MULTIPLIER ANALYSIS  Multiplier analysis explains what happens to circular flow of economic life when the behavior of one of the sectors or the components of aggregate dema