Linear Algebra and Its Applications (5th Edition)
5th Edition
ISBN: 9780321982384
Author: David C. Lay, Steven R. Lay, Judi J. McDonald
Publisher: PEARSON
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Textbook Question
Chapter 2.6, Problem 8E
Let C be an n × n consumption matrix whose column sums are less than 1. Let x be the production
- a. Show that if die final demand changes from d to d + Δd, then die new production level must be x + Δx. Thus Δx gives die amounts by which production must change in order to accommodate the change Δd in demand.
- b. Let Δd be the vector in ℝn with 1 as die first entry and 0’s elsewhere. Explain why the corresponding production Δx is die first column of (I − C)−1. This shows that the first column of (I − C)−l gives the amounts the various sectors must produce to satisfy an increase of 1 unit in the final demand for output from sector 1.
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Chapter 2 Solutions
Linear Algebra and Its Applications (5th Edition)
Ch. 2.1 - Since vectors in n may be regarded as n 1...Ch. 2.1 - Let A be a 4 4 matrix and let x be a vector in 4....Ch. 2.1 - Suppose A is an m n matrix, all of whose rows are...Ch. 2.1 - In Exercises 1 and 2, compute each matrix sum or...Ch. 2.1 - In Exercises 1 and 2, compute each matrix sum or...Ch. 2.1 - In the rest of this exercise set and in those to...Ch. 2.1 - Compute A 5I3 and (5I3)A, when A=[913876418].Ch. 2.1 - In Exercises 5 and 6, compute die product AB in...Ch. 2.1 - In Exercises 5 and 6, compute die product AB in...Ch. 2.1 - If a matrix A is 5 3 and the product AB is 5 7,...
Ch. 2.1 - How many rows does B have if BC is a 3 4 matrix?Ch. 2.1 - Let A=[2531] and B=[453k]. What value(s) of k, if...Ch. 2.1 - Let A=[2346], B=[8455], and C=[5231]. Verify that...Ch. 2.1 - Let A=[111123145] and D=[200030005]. Compute AD...Ch. 2.1 - Let A=[3612]. Construct a 2 2 matrix B such that...Ch. 2.1 - Let r1,..., rp be vectors in n, and let Q be an m ...Ch. 2.1 - Let U be the 3 2 cost matrix described in Example...Ch. 2.1 - Exercises 15 and 16 concern arbitrary matrices A,...Ch. 2.1 - a. If A and B are 3 3 and B = [b1 b2 b3], then AB...Ch. 2.1 - If A=[1225] and AB=[121693], determine the first...Ch. 2.1 - Suppose the first two columns, b1 and b2, of B are...Ch. 2.1 - Suppose die third column of B is die sum of die...Ch. 2.1 - Suppose the second column of B is all zeros. What...Ch. 2.1 - Suppose the last column of AB is entirely zero but...Ch. 2.1 - Show that if the columns of B are linearly...Ch. 2.1 - Suppose CA = In (the n n identity matrix). Show...Ch. 2.1 - Suppose AD = Im (the m m identity matrix). Show...Ch. 2.1 - Suppose A is an m n matrix and there exist n m...Ch. 2.1 - Suppose A is a 3 n matrix whose columns span 3....Ch. 2.1 - In Exercises 27 and 28, view vectors in n as n 1...Ch. 2.1 - If u and v are in n. how are uTv and vTu related?...Ch. 2.1 - Prove Theorem 2(b) and 2(c). Use the row-column...Ch. 2.1 - Prove Theorem 2(d). [Hint: The (i, j)-entry in...Ch. 2.1 - Show that ImA = A when A is an m n matrix. You...Ch. 2.1 - Show that AIn = A when A is an m n matrix. [Hint:...Ch. 2.1 - Prove Theorem 3(d). [Hint: Consider the jth row of...Ch. 2.1 - Give a formula for (A Bx)T, where x is a vector...Ch. 2.2 - Use determinants to determine which of the...Ch. 2.2 - Find the inverse of the matrix A = [121156545], if...Ch. 2.2 - If A is an invertible matrix, prove that 5A is an...Ch. 2.2 - Find the inverses of the matrices in Exercises 14....Ch. 2.2 - Find the inverses of the matrices in Exercises 14....Ch. 2.2 - Find the inverses of the matrices in Exercises 14....Ch. 2.2 - Find the inverses of the matrices in Exercises 14....Ch. 2.2 - Use the inverse found in Exercise 1 to solve the...Ch. 2.2 - Use the inverse found in Exercise 3 to solve the...Ch. 2.2 - Let A = [12512], b1 = [13], b2 = [15], b3 = [26],...Ch. 2.2 - Use matrix algebra to show that if A is invertible...Ch. 2.2 - In Exercises 9 and 10, mark each statement True or...Ch. 2.2 - a. A product of invertible n n matrices is...Ch. 2.2 - Let A be an invertible n n matrix, and let B be...Ch. 2.2 - Let A be an invertible n n matrix, and let B be...Ch. 2.2 - Suppose AB = AC. where B and C are n p matrices...Ch. 2.2 - Suppose (B C) D = 0, where B and C are m n...Ch. 2.2 - Suppose A, B, and C are invertible n n matrices....Ch. 2.2 - Suppose A and B are n n, B is invertible, and AB...Ch. 2.2 - Solve the equation AB = BC for A, assuming that A,...Ch. 2.2 - Suppose P is invertible and A = PBP1 Solve for B...Ch. 2.2 - If A, B, and C are n n invertible matrices, does...Ch. 2.2 - Suppose A, B, and X are n n matrices with A, X,...Ch. 2.2 - Explain why the columns of an n n; matrix A are...Ch. 2.2 - Explain why the columns of an n n matrix A span n...Ch. 2.2 - Suppose A is n n and die equation Ax = 0 has only...Ch. 2.2 - Suppose A is n n and the equation Ax = b has a...Ch. 2.2 - Exercises 25 and 26 prove Theorem 4 for A =...Ch. 2.2 - Exercises 25 and 26 prove Theorem 4 for A =...Ch. 2.2 - Exercises 27 and 28 prove special cases of the...Ch. 2.2 - Show that if row 3 of A is replaced by row3(A) 4 ...Ch. 2.2 - Find the inverses of the matrices in Exercises...Ch. 2.2 - Find die inverses of the matrices in Exercises...Ch. 2.2 - Find die inverses of the matrices in Exercises...Ch. 2.2 - Find die inverses of the matrices in Exercises...Ch. 2.2 - Use the algorithm from this section to find the...Ch. 2.2 - Repeat the strategy of Exercise 33 to guess the...Ch. 2.2 - Let A = [279256134]. Find the third column of A1...Ch. 2.2 - [M] Let A = [2592754618053715450149]. Find the...Ch. 2.2 - Let A = [121315]. Constuct a 2 3 matrix C (by...Ch. 2.2 - Let A = [11100111]. Construct a 4 2 matrix D...Ch. 2.2 - Let D = [.005.002.001.002.004.002.001.002.005] be...Ch. 2.3 - Determine if A = [234234234] is invertible.Ch. 2.3 - Suppose that for a certain n n matrix A,...Ch. 2.3 - Suppose that A and B are n n matrices and the...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - Unless otherwise specified, assume that all...Ch. 2.3 - In Exercises 11 and 12, the matrices are all n n....Ch. 2.3 - In Exercises 11 and 12, the matrices are all n n....Ch. 2.3 - An m n upper triangular matrix is one whose...Ch. 2.3 - An m n lower triangular matrix is one whose...Ch. 2.3 - Can a square matrix with two identical columns be...Ch. 2.3 - Is it possible for a 5 5 matrix to be invertible...Ch. 2.3 - If A is invertible, then the columns of A1 are...Ch. 2.3 - If C is 6 6 and the equation Cx = v is consistent...Ch. 2.3 - If the columns of a 7 7 matrix D are linearly...Ch. 2.3 - If n n matrices E and F have the property that EF...Ch. 2.3 - If the equation Gx = y has more than one solution...Ch. 2.3 - If the equation Hx = c is inconsistent for some c...Ch. 2.3 - If an n n matrix K cannot be row reduced to In....Ch. 2.3 - If L is n n and the equation Lx = 0 has the...Ch. 2.3 - Verify the boxed statement preceding Example 1.Ch. 2.3 - Explain why the columns of A2 span n whenever the...Ch. 2.3 - Show that if AB is invertible, so is A. You cannot...Ch. 2.3 - Show that if AB is invertible, so is B.Ch. 2.3 - If A is an n n matrix and the equation Ax = b has...Ch. 2.3 - If A is an n n matrix and the transformation x ...Ch. 2.3 - Suppose A is an n n matrix with the property that...Ch. 2.3 - Suppose A is an n n matrix with the property that...Ch. 2.3 - In Exercises 33 and 34, T is a linear...Ch. 2.3 - In Exercises 33 and 34, T is a linear...Ch. 2.3 - Let T : n n be an invertible linear...Ch. 2.3 - Let T be a linear transformation that maps n onto...Ch. 2.3 - Suppose T and U are linear transformations from n...Ch. 2.3 - Suppose a linear transformation T : n n has the...Ch. 2.3 - Let T : n n be an invertible linear...Ch. 2.3 - Suppose T and S satisfy the invertibility...Ch. 2.4 - Show that[I0AI] is invertible and find its...Ch. 2.4 - Compute XTX, where X is partitioned as [X1 X2].Ch. 2.4 - In Exercises 19, assume that the matrices are...Ch. 2.4 - In Exercises 19, assume that the matrices are...Ch. 2.4 - In Exercises 19, assume that the matrices are...Ch. 2.4 - In Exercises 19, assume that the matrices are...Ch. 2.4 - In Exercises 58, find formulas for X, Y, and Z in...Ch. 2.4 - In Exercises 58, find formulas for X, Y, and Z in...Ch. 2.4 - In Exercises 58, find formulas for X, Y, and Z in...Ch. 2.4 - In Exercises 58, find formulas for X, Y, and Z in...Ch. 2.4 - Suppose A11 is an invertible matrix. Find matrices...Ch. 2.4 - The inverse of [I00CI0ABI] is [I00ZI0XYI]. Find X,...Ch. 2.4 - In Exercises 11 and 12, mark each statement True...Ch. 2.4 - In Exercises 11 and 12, mark each statement True...Ch. 2.4 - Let A=[B00C], where B and C are square. Show A is...Ch. 2.4 - Show that the block upper triangular matrix A in...Ch. 2.4 - Suppose A11 is invertible. Find X and Y such that...Ch. 2.4 - Suppose the block matrix A on the left side of (7)...Ch. 2.4 - When a deep space probe is launched, corrections...Ch. 2.4 - Let X be an m n data matrix such that XT X is...Ch. 2.4 - In the study of engineering control of physical...Ch. 2.4 - Suppose the transfer function W(S) in Exercise 19...Ch. 2.4 - a. Verify that A2 = I when A=[1031]. b. Use...Ch. 2.4 - Generalize the idea of Exercise 21(a) [not 21(b)]...Ch. 2.4 - Use partitioned matrices to prove by induction...Ch. 2.4 - Use partitioned matrices to prove by induction mat...Ch. 2.4 - Without using row reduction, find the inverse of...Ch. 2.5 - Find an LU factorization of...Ch. 2.5 - In Exercises 16, solve the equation Ax = b by...Ch. 2.5 - In Exercises 16, solve the equation Ax = b by...Ch. 2.5 - In Exercises 16, solve the equation Ax = b by...Ch. 2.5 - In Exercises 16, solve the equation Ax = b by...Ch. 2.5 - In Exercises 16, solve the equation Ax = b by...Ch. 2.5 - In Exercises 16, solve the equation Ax = b by...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - Find an LU factorization of the matrices in...Ch. 2.5 - When A is invertible, MATLAB finds A1 by factoring...Ch. 2.5 - Find A1 as in Exercise 17, using A from Exercise...Ch. 2.5 - Let A be a lower triangular n n matrix with...Ch. 2.5 - Let A = LU be an LU factorization. Explain why A...Ch. 2.5 - Suppose A = BC, where B is invertible. Show that...Ch. 2.5 - (Reduced LU Factorization) With A as in the...Ch. 2.5 - (Rank Factorization) Suppose an m n matrix A...Ch. 2.5 - (QR Factorization) Suppose A = QR, where Q and R...Ch. 2.5 - (Singular Value Decomposition) Suppose A = UDVT,...Ch. 2.5 - (Spectral Factorization) Suppose a 3 3 matrix A...Ch. 2.5 - Design two different ladder networks that each...Ch. 2.5 - Show that if three shunt circuits (with...Ch. 2.5 - Prob. 29ECh. 2.5 - Find a different factorization of the A in...Ch. 2.6 - Suppose an economy has two sectors: goods and...Ch. 2.6 - Exercises 14 refer to an economy that is divided...Ch. 2.6 - Exercises 14 refer to an economy that is divided...Ch. 2.6 - Exercises 14 refer to an economy that is divided...Ch. 2.6 - Exercises 14 refer to an economy that is divided...Ch. 2.6 - Consider the production model x = Cx + d for an...Ch. 2.6 - Repeat Exercise 5 with C=[.1.6.5.2], and d=[1811]....Ch. 2.6 - Let C and d be as in Exercise 5. a. Determine the...Ch. 2.6 - Let C be an n n consumption matrix whose column...Ch. 2.6 - Solve the Leontief production equation for an...Ch. 2.6 - The consumption matrix C for the U.S. economy in...Ch. 2.6 - The Leontief production equation, x = Cx + d, is...Ch. 2.6 - Let C be a consumption matrix such that Cm 0 as m...Ch. 2.7 - Rotation of a figure about a point p in 2 is...Ch. 2.7 - What 3 3 matrix will have the same effect on...Ch. 2.7 - Use matrix multiplication to find the image of the...Ch. 2.7 - In Exercises 38, find the 3 3 matrices that...Ch. 2.7 - In Exercises 38, find the 3 3 matrices that...Ch. 2.7 - In Exercises 38, find the 3 3 matrices that...Ch. 2.7 - In Exercises 38, find the 3 3 matrices that...Ch. 2.7 - In Exercises 38, find the 3 3 matrices that...Ch. 2.7 - In Exercises 38, find the 3 3 matrices that...Ch. 2.7 - A 2 200 data matrix D contains the coordinates of...Ch. 2.7 - Consider the following geometric 2D...Ch. 2.7 - Prob. 11ECh. 2.7 - A rotation in 2 usually requires four...Ch. 2.7 - The usual transformations on homogeneous...Ch. 2.7 - Prob. 14ECh. 2.7 - What vector in 3 has homogeneous coordinates...Ch. 2.7 - Are (1. 2, 3, 4) and (10, 20, 30, 40) homogeneous...Ch. 2.7 - Give the 4 4 matrix that rotates points in 3...Ch. 2.7 - Give the 4 4 matrix that rotates points in 3...Ch. 2.7 - Let S be the triangle with vertices (4.2, 1.2,4),...Ch. 2.7 - Let S be the triangle with vertices (9,3,5),...Ch. 2.7 - [M] The actual color a viewer sees on a screen is...Ch. 2.7 - [M] The signal broadcast by commercial television...Ch. 2.8 - Let A=[115207353] and u=[732] Is u in Nul A? Is u...Ch. 2.8 - Given A=[010001000], find a vector in Nul A and a...Ch. 2.8 - Suppose an n n matrix A is invertible. What can...Ch. 2.8 - Exercises 14 display sets in 2. Assume the sets...Ch. 2.8 - Exercises 14 display sets in 2. Assume the sets...Ch. 2.8 - Exercises 14 display sets in 2. Assume the sets...Ch. 2.8 - Exercises 1-4 display sets in 2. Assume the sets...Ch. 2.8 - Let v1 = [235], v2 = [458], and w = [829]....Ch. 2.8 - Let v1 = [1243], v2 = [4797], v3 = [5865], and u =...Ch. 2.8 - Let v1 = [286], v2 = [387], v3 = [467], p =...Ch. 2.8 - Let v1 = [306], v2 = [223], v3 = [063], and p =...Ch. 2.8 - With A and p as in Exercise 7, determine if p is...Ch. 2.8 - With u = (2, 3, 1) and A as in Exercise 8,...Ch. 2.8 - In Exercises 11 and 12. give integers p and q such...Ch. 2.8 - In Exercises 11 and 12. give integers p and q such...Ch. 2.8 - For A as in Exercise 11, find a nonzero vector in...Ch. 2.8 - For A as in Exercise 12, find a nonzero vector in...Ch. 2.8 - Determine which sets in Exercises 15-20 are bases...Ch. 2.8 - Determine which sets in Exercises 15-20 are bases...Ch. 2.8 - Determine which sets in Exercises 15-20 are bases...Ch. 2.8 - Determine which sets in Exercises 15-20 are bases...Ch. 2.8 - Determine which sets in Exercises 15-20 are bases...Ch. 2.8 - Determine which sets in Exercises 15-20 are bases...Ch. 2.8 - In Exercises 21 and 22, mark each statement True...Ch. 2.8 - a. A subset H of n is a subspace if the zero...Ch. 2.8 - Exercises 23-26 display a matrix A and an echelon...Ch. 2.8 - Exercises 23-26 display a matrix A and an echelon...Ch. 2.8 - Exercises 23-26 display a matrix A and an echelon...Ch. 2.8 - Exercises 23-26 display a matrix A and an echelon...Ch. 2.8 - Construct a nonzero 3 3 matrix A and a nonzero...Ch. 2.8 - Construct a nonzero 3 3 matrix A and a vector b...Ch. 2.8 - Construct a nonzero 3 3 matrix A and a nonzero...Ch. 2.8 - Suppose the columns of a matrix A = [a1 ap] are...Ch. 2.8 - In Exercises 31-36, respond as comprehensively as...Ch. 2.8 - In Exercises 31-36. respond as comprehensively as...Ch. 2.8 - In Exercises 31-36, respond as comprehensively as...Ch. 2.8 - In Exercises 31-36, respond as comprehensively as...Ch. 2.8 - In Exercises 31-36, respond as comprehensively as...Ch. 2.8 - In Exercises 31-36, respond as comprehensively as...Ch. 2.8 - [M] In Exercises 37 and 38, construct bases for...Ch. 2.8 - [M] In Exercises 37 and 38, construct bases for...Ch. 2.9 - Determine the dimension of the subspace H of 3...Ch. 2.9 - Prob. 2PPCh. 2.9 - Could 3 possibly contain a four-dimensional...Ch. 2.9 - In Exercises 1 and 2, find the vector x determined...Ch. 2.9 - In Exercises 1 and 2, find the vector x determined...Ch. 2.9 - In Exercises 3-6, the vector s is in a subspace H...Ch. 2.9 - In Exercises 1 and 2, find the vector x determined...Ch. 2.9 - In Exercises 3-6, the vector x is in a subspace H...Ch. 2.9 - In Exercises 3-6, the vector x is in a subspace H...Ch. 2.9 - Let b1 = [30], b2 = [12], w = [72], x = [41], and...Ch. 2.9 - Let b1 = [02], b2 = [21], x = [23], y = [24], z =...Ch. 2.9 - Exercises 9-12 display a matrix A and an echelon...Ch. 2.9 - Exercises 9-12 display a matrix A and an echelon...Ch. 2.9 - Exercises 9-12 display a matrix A and an echelon...Ch. 2.9 - Exercises 9-12 display a matrix A and an echelon...Ch. 2.9 - In Exercises 13 and 14, find a basis for the...Ch. 2.9 - In Exercises 13 and 14, find a basis for the...Ch. 2.9 - Suppose a 3 5 matrix A has three pivot columns....Ch. 2.9 - Suppose a 4 7 matrix A has three pivot columns....Ch. 2.9 - In Exercises 17 and 18, mark each statement True...Ch. 2.9 - In Exercises 17 and 18, mark each statement True...Ch. 2.9 - If the subspace of all solutions of Ax = 0 has a...Ch. 2.9 - What is the rank of a 4 5 matrix whose null space...Ch. 2.9 - If the tank of a 7 6 matrix A is 4, what is the...Ch. 2.9 - Show that a set of vectors {v1, v2, , v5} in n is...Ch. 2.9 - If possible, construct a 3 4 matrix A such that...Ch. 2.9 - Constructa4 3 matrix with tank 1.Ch. 2.9 - Let A be an n p matrix whose column space is...Ch. 2.9 - Suppose columns 1, 3, 5, and 6 of a matrix A are...Ch. 2.9 - Suppose vectors b1, bp span a subspace W, and let...Ch. 2.9 - Use Exercise 27 to show that if A and B are bases...Ch. 2.9 - Prob. 29ECh. 2.9 - [M] Let H = Span {v1, v2, v3} and B= {v1, v2,...Ch. 2 - Assume that the matrices mentioned in the...Ch. 2 - Find the matrix C whose inverse is C1 = [4567].Ch. 2 - Show that A = [000100010]. Show that A3 = 0. Use...Ch. 2 - Suppose An = 0 for some n 1. Find an inverse for...Ch. 2 - Suppose an n n matrix A satisfies the equation A2...Ch. 2 - Prob. 6SECh. 2 - Let A = [1382411125] and B = [351534]. Compute A1B...Ch. 2 - Find a matrix A such that the transformation x Ax...Ch. 2 - Suppose AB =[5423] and B = [7321]. Find A.Ch. 2 - Suppose A is invertible. Explain why ATA is also...Ch. 2 - Let x1, , xn, be fixed numbers. The matrix below,...Ch. 2 - Prob. 12SECh. 2 - Given u in n with uTu = 1, Let P = uuT (an outer...Ch. 2 - Prob. 14SECh. 2 - Prob. 15SECh. 2 - Let A be an n n singular matrix Describe how to...Ch. 2 - Let A be a 6 4 matrix and B a 4 6 matrix. Show...Ch. 2 - Suppose A is a 5 3 matrix and mere exists a 3 5...Ch. 2 - Prob. 19SECh. 2 - [M] Let An be the n n matrix with 0s on the main...
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- Consider cost min problem for the X1α and X2β cobb-douglas production function. Find minimum value of the function. Also find the conditional demand function for inputs.arrow_forwardSuppose a firm's cost function is given by C(w1, w2, y) = Kwfw"y where w, and y denote the price of the i-th input and the output level respectively and K, a and b are positive constants with 0 < a < 1. Which one of the following is the conditional input demand function for input 2 ? Select one: O a. Kufw"y 1-a O b. Kw-"y O c. Kaw"w-"y O d. wqw"y 1-a O e. None of the abovearrow_forward2) A production function for a business follows the model P(L, K) = 0.1 L0.4K0.6 over the course of one year, where P represents the total value of all products the company makes, L represents the value of the labor from employees, and K represents the value of all the company's assets (buildings, machines, etc.), where everything is measured in millions of dollars. ap a. Find and ƏL ap ак' , and explain what they represent in this context. b. Evaluate the partial derivatives from part a when (L, K) = (3,4). If this was your business and your values, if you wanted to expand would it be better to expand in workforce (increase L) or expand in assets (increase K)?arrow_forward
- The Marshallian demand function for good x is given by: x = I/(2px). The compensated demand function for good x is given by: xc = [(py/px)U]1/2. The indirect utility function for this consumer choice problem is given by: V(px, py, I) = I2/4pxpy. In this example, the substitution effect for good x own-price change (as opposed to cross-price effect) is given by the following equation: –a(I/px2), where a is a constant. What is the constant a? Please show steps.arrow_forwardA person has a direct utility function as follows: u( x, x,) a) Find the expenditure function and Hicksian demand functions for both goods.arrow_forwardHuntco produces tomato sauce at five different plants. The tomato sauce is stored at one of three warehouses (W/H). The per-ton cost (in hundreds of dollars) of producing tomato sauce at each plant and shipping it to each warehouse; capacity of the plants; and the fixed cost of setting up the plants are given in the below table. Cost to ($/ton) DIIT From plant WH 1 WH2 WH 3 Capacity (tons) Fixed cost (x1,000 in $) Plant 1 8 10 12 300 Plant 2 200 45 Plant 3 6 300 Plant 4 5 7 200 42 Plant 5 7 6 400 40 Huntco has 4 customers. The cost of shipping a ton of sauce from each warehouse to each customer; customers' demand quantities; and the fixed cost of maintaining the warehouses are given below. Cost to ($/ton) Fixed cost From WH Customer 1 Customer 2 Customer 3 Customer 4 (x1,000 in $) WH 1 40 80 90 50 30 WIH 2 70 70 60 80 40 WIH 3 80 30 50 60 30 Demand (tons) 200 300 150 250 We would like to meet the demand at minimum cost using an appropriate mathematical model. • Decision variables? •…arrow_forward
- suppose that the price p of a product and its demand x are related through the price-demand equation x+400p=8000. Were interested to find all the values of p such that the demand is inelastic. which of the following gives the correct regionarrow_forwardSuppose that a firm can produce a part it uses for $520 per unit, with a fixed cost of $25,000. The company has been offered a contract from a supplier that allows it to purchase the part at a cost of $544 per unit, which includes transportation. The key outputs in the model are the difference in these costs and the decision that results in the lower cost. Assume that the production volume is uncertain. Suppose the manufacturer has enough data and information to estimate that the production volume will be normally distributed with a mean of 1,000 and a standard deviation of 85. Use a 100-trial Monte Carlo simulation to find the average cost difference and percent of trials that result in manufacturing or outsourcing as the best decision. Please include table showing both the cost difference and decision for each trial. Please include the Excel worksheet with all the details with your answer.arrow_forwardProcess A Output : x = 3; y = 1 Input: L = 2; K= 1 Process B Output : x = 2; y = 1 Input: L = 1; K = 2 Utility Function of indivs. : U=xy. L = 500 units; K = 500 units 1. In equilibrium, what are the relative prices of x, y, L and K? 2. What is the effect on the distribution of income by factor shares of (a) wage tax ton L employed and (b) excise tax e on y? %3D %3Darrow_forward
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