Exercises 15 and 16 refer to Exercise 15 in Section 9.2. This exercise was solved using the simplex method in Exercise 17 of Section 9.3. Use the final simplex tableau for that exercise to answer the following questions.
15. What is the marginal value of additional labor in the fabricating department? Give an economic interpretation to your answer.
15. The Benri Company manufactures two kinds of kitchen gadgets: invertible widgets and collapsible whammies. The production process is divided into three departments: fabricating, packing, and shipping. The hours of labor required for each operation and the hours available in each department each day are shown below.
Widgets | Whammies | Time available | |
Fabricating | 5.0 | 2.0 | 200 |
Packing | 0.2 | 0.4 | 16 |
Shipping | 0.2 | 0.2 | 10 |
Suppose that the profit 011 each widget is $20 and the profit on each whammy is $26. How many widgets and how many whammies should be made each day to maximize the company’s profit?
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Thomas' Calculus and Linear Algebra and Its Applications Package for the Georgia Institute of Technology, 1/e
- 23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes 1/2 of the food and 1/3 of the manufactured goods. Manufacturing consumes 1/2 of the food and 2/3 of the manufactured goods. Assuming the economy is closed and in equilibrium, find the relative outputs of the farming and manufacturing industries.arrow_forwardRedo Exercise 5, assuming that the house blend contains 300 grams of Colombian beans, 50 grams of Kenyan beans, and 150 grams of French roast beans and the gourmet blend contains 100 grams of Colombian beans, 350 grams of Kenyan beans, and 50 grams of French roast beans. This time the merchant has on hand 30 kilograms of Colombian beans, 15 kilograms of Kenyan beans, and 15 kilograms of French roast beans. Suppose one bag of the house blend produces a profit of $0.50, one bag of the special blend produces a profit of $1.50, and one bag of the gourmet blend produces a profit of $2.00. How many bags of each type should the merchant prepare if he wants to use up all of the beans and maximize his profit? What is the maximum profit?arrow_forward
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