The following questions refers to the Blue Ridge Hot Tubs example discussed in this chapter.
a. Suppose Howie Jones has to purchase a single piece of equipment for $1,000 to produce any Aqua-Spas or Hydro-Luxes. How will this affect the formulation of the model of his decision problem?
b. Suppose Howie must buy one piece of equipment that costs $900 to produce any Aqua-Spas and a different piece of equipment that costs $800 to produce any Hydro-Luxes. How will this affect the formulation of the model for his problem?