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An athlete carefully watches her intake of calcium, protein, and calories. Her breakfast diet consists mainly of milk and cereal, whose prices and nutrient contents appear in the following table:
Calcium
Milk (1 oz.)
2
Cereal (1 oz.)
Protein
6
Calories
Price
$.10
$.15
She seeks a diet that supplies at least 50 units of calcium, 90 units of protein, and 66 calories at minimum cost.
a. Formulate, graph, and solve this decision problem. What is the minimum cost of meeting the nutrient requirements?
b. Calculate and provide an economic interpretation of the shadow price associated with calcium.
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