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
Q. Explain about IS-LM-model? The key difference between the IS-LM model and the cross model is that nominal interest rate is exogenous in cross model on the other handit is en



Explain the Economic functions of money - A unit of account In a monetary economy, all prices may be expressed in monetary units which everyone may relate to. Without money,

Analyze the relationship between the production possibilities curve and the circular flow diagram. Discuss how the change of production possibilities curve affects the circular flo

Suppose that an investment tax credit is stated to be temporary in nature, and the credit will be 10% on newly acquired capital (investment) equipment and will last just one year o

Marginal Propensity to save  (MPS)  is the ratio of change in total saving to change in total disposable income. Symbolically,     MPS = ?S/?Y For example, total

What is debt swept?

The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the United States, the monetary authority is t