Let's say we are producing two products, pi and p2, by using two raw materials, r1 and r2. To make one unit of p1, we use 1 unit of r1, 2 units of r2 and to make one unit of p2, we use 3 units of r1, 2 units of r2. Value of one unit of rı is $1 and value of one unit of r2 is $3 and we have a total of 100 units of r1 and 200 units of r2. Let the selling price per one pi made be $10 and per one p2 made be $15. We want to maximize the profit.

Let's say we are producing two products, pi and p2, by using two raw materials, r1 and r2. To make one unit of p1, we use 1 unit of r1, 2 units of r2 and to make one unit of p2, we use 3 units of r1, 2 units of r2. Value of one unit of rı is $1 and value of one unit of r2 is $3 and we have a total of 100 units of r1 and 200 units of r2. Let the selling price per one pi made be $10 and per one p2 made be $15. We want to maximize the profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A consumer has set of budget of $800 for the consumption of good X a d Y. The price of Good X is $10 and the price of good Y is $40.The consumer has a utility function given by U (X,Y) = X(0.80)Y(0.20).Find the optimal soloution using a methof that does not involves equations and illustrate the soloution?
Assume a consumer with the utility function U = U (X, Y) = X2 Y2 and the typical budget constraint M = PxX + PyY a. Set up the constrained maximization problem and derive the first-order conditions. b. Derive the consumer’s demand for X and Y in terms of the parameters.
Q6 If the utility function of consumption of a pizzas and y sodas is ry, the cost of pizzas is $5 each, the cost of sodas is $2 each, and the total amount available for snacks is $20. Find the amounts of pizzas and sodas for which consumption will be a maximum.
Two grad students go out to lunch and decide to split the bill evenly between them. Each student has a quasi-linear utility function given by ui(fi, xi) = φi(fi)+xi, where φi(·) is strictly concave, fi is the amount of food consumed by student i, and xi is a composite numeraire good. Each student has a fixed budget of mi. EVALUATE THIS CLAIM: Both students eat too much!
Suppose an individual in the Grossman model is trying to decide what to have for dinner. His options are as below. Each dish has an effect on the level of home good Z and health H. Мeal Home good Z Нeath H Steak and eggs (A) Kale salad with broccoli (B) Entire box of cookies (C) +7 -2 -2 +5 +10 -20 Suppose the dinner's single-period utility function is U=3Z+H • If the individual is trying to maximize his single-period utility, and he can only select one item from the table (assuming he can afford any item in the table). Which meal would he choose? Please type in A, B, or C (do not enter space, punctuation, or any other symbols or words) • A miracle pill is discovered that halves the negative health impact of cookies. How does this impact the individual's choice? What meal would be chosen now? Please type in A, B, or C (do not enter space, punctuation, or any other symbols or words) • If the individual lives in multi-period rather than single-period, would he value Z or H more in…
Using the homogeneity of indirect utility, which of the following cannot be an indirect utility function? (a) V: = (b) V: = (c) V: = [2 PzPy I Pz+Py p²+p² (d) V = 1 Pz
Joan has the following utility function: u(x, y) (a) Find Jane's marshallian demands. 5x + 3y.
The total utility from two products is maximized at the optimal consumption bundle. True or False?
can you please provide a explanation with any mathematical working out
Ding Ding is a cat philosopher. He spends his time on two activities. Sleep and thinking. Both activities produce pleasure to Ding Ding. How effective Ding Ding is in each activity varies day by day. But on a given day, if he spend “s” effective hours in sleeping and “t” effective hours in thinking, his utility is u(s,t)=s^2+t. you can assume that time is continuous in answering the following question. (A) Let us first ignore that there are only 24 hours each day. Label “s” on the x-axis and “t” on the y-axis in a diagram. Draw two indifference curves u(s,t)=s^2+t=24^2=576, and u(s,t)= s^2+t=12^2=144. On each indifference curve, you have to mark at least the coordinates of four points to illustrate the shape of it. (B) Describe in words how these two indifference curves in (a) relate to each other.
Please get correct
Which of the following utility functions represent preferences that are NOT homothetic? (a) U(X, Y) = 10X ² + y² (b) U(X, Y) = ln(X) + 42 ln(Y) + ² (c) U(X,Y) = 4X¾ +7Y (d) U(X,Y)= XY (e) All of the above utility functions represent homothetic preferences