A chemical manufacturer uses chemicals 1 and 2 to produce two drugs. Drug 1 must be at least 80% chemical 2 and drug 2 must be at least 75% chemical 1. Up to 70,000 ounces of drug 1 can be sold at $40 per ounce; up to 50,000 ounces of drug 2 can be sold at $15 per ounce. Up to 65,000 ounces of chemical 1 and up to 42,000 ounces of chemical 2 can be purchased. Formulate this problem as a linear programming model (using algebraic notation) to determine how to maximize the manufacturer's revenue. (You only need to formulate this problem as an algebraic model. No Excel spreadsheet model. No need to solve the model.)

A chemical manufacturer uses chemicals 1 and 2 to produce two drugs. Drug 1 must be at least 80% chemical 2 and drug 2 must be at least 75% chemical 1. Up to 70,000 ounces of drug 1 can be sold at $40 per ounce; up to 50,000 ounces of drug 2 can be sold at $15 per ounce. Up to 65,000 ounces of chemical 1 and up to 42,000 ounces of chemical 2 can be purchased. Formulate this problem as a linear programming model (using algebraic notation) to determine how to maximize the manufacturer's revenue. (You only need to formulate this problem as an algebraic model. No Excel spreadsheet model. No need to solve the model.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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