The government of Grenada wishes to rebuild the West coast road that leads to the north of the island to help alleviate traffic congestion and to provide users with a safer road network. The government of Grenada has approached two (2) contractors for an estimate. They are required to submit a proposal that details the cost combination of labour (L), machinery (M), and technology (T) in achieving their expected total cost, total profit, and total revenue. Contractor 1 Two labour, four machinery, and three
The government of Grenada wishes to rebuild the West coast road that leads to the north of the island to help alleviate traffic congestion and to provide users with a safer road network. The government of Grenada has approached two (2) contractors for an estimate. They are required to submit a proposal that details the cost combination of labour (L), machinery (M), and technology (T) in achieving their expected total cost, total profit, and total revenue.
Contractor 1
Two labour, four machinery, and three technology will result in a total cost of thirty-three dollars. While one labour, two machinery, and one technology give a total profit of fifteen dollars. Lastly, ten labour, five machinery, and six technologies result in total revenue of eighty-three dollars.
Contractor 2
No Proposal was submitted.
a) From Contractor I's proposal, derive three (3) simultaneous equations.
b) From the answer to part a) above, set these equations in matrix form
c) Given that the government of Grenada only received one proposal, should the contract be awarded to Contractor 1? and why.
d) Give three (3) reasons why you believe Contractor 2 never submitted a proposal?
e) After setting the equations in matrix form from part b) above, calculate all the cofactors of Matrix A.
f) Which of the three resources do you expect Contractor 1 to price the most? Give two (2) reasons for your answer.
g) Hence or otherwise, determine the price of Contractor I's labour, machinery and technology.
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