Shadow price with respect to the production constraint

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A computer store sells two models. The first is a laptop which costs $950 to produce, and a net book which cost $400 to produce. It is estimated that the average selling price of the laptop is $1200 minus $0.5 for each net book sold and minus $0.03 for each laptop sold. The predicted average selling price of the net book is $800 minus $0.2 for each laptop sold and minus $0.04 for each net book sold. Suppose the store is limited to not more than 500 laptops, not more than 400 net books, and not more than 800 total. Compute the shadow price with respect to the production constraint of 800.

Reference no: EM13970411

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