Find the optimal amounts and solve the dual problem, Macroeconomics

After some consultants point out that the Acme Toy Company has two bottlenecks in its production of xylophones and yo-yos. The first is a critical grinding machine that only has 9 hours of capacity per day. The second is warehouse space which is limited to 10 (thousand) square feet. Each production run of xylophones requires 3 hours of grinding and take up two thousand square feet of storage while each yo-yo run requires one hour of grinding time and takes up 2000 square feet of storage. Each run of xylophones contributes $4 (thousand) to overhead and profit while each run of yo-yos contributes $2 (thousand).

  1. Find the optimal amounts of each kind of toy to produce using graphical methods.
  2. State and solve the dual problem graphically.
  3. Now solve the problem using the revised simplex method. Do you get the same answers?
  4. How much would the firm be willing to pay to increase the capacity of the grinding machine?

 

Posted Date: 3/7/2013 12:12:42 AM | Location : United States







Related Discussions:- Find the optimal amounts and solve the dual problem, Assignment Help, Ask Question on Find the optimal amounts and solve the dual problem, Get Answer, Expert's Help, Find the optimal amounts and solve the dual problem Discussions

Write discussion on Find the optimal amounts and solve the dual problem
Your posts are moderated
Related Questions
policy measures to control trade cycle

While referring to the "EYE on YOUR LIFE" section on, discuss the macroeconomic policy issues facing the U.S. economy today based on the economic concepts you have learned in this

Industrial Production and Agricultural Production  Industrial production and agricultural production are aggregate measures of sectoral outputs. It is a common practice to divi

FDI Inflows - An Appraisal: A comparison of the magnitude of FDI inflows received by India would appear too small, especially when compared to the inflows received by other co

Which of the following investments has a larger future value: Investment A an $1,000 investment earning 5% per year for 6 years? Or Investment B a %500 investment earning 10% per y

Q. Define the Real wage? Consider the following scenario. You work full time and during January 2008 you make 2000 euro after tax. A certain basket of goods and services costs

Use the following data for a firm's output at various levels of employment (L) to calculate: a) its marginal physical product of labor (MPPL) schedule; (b) its (MPPL/MRCL) schedule


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

conditions for steady state in solow model.in what respects is golden rule different from steady state?