Question
A company manufactures two products. If it charges price pi for product i, it can sell qi units of product i, where q1 = 603p1
A company manufactures two products. If it charges price pi for product i, it can sell qi units of product i, where q1 = 603p1 +2p2 and q2 = 802p2 +p1.
Thus the production quantity for product 1 is less than q1 and the production quantity for product 2 is less than q2. Your model will have only two constraints: Quantity Produced of Product i <= Qi for i=1, 2.
It costs $6 to produce a unit of product 1 and $12 to produce a unit of product 2.
The company wants to decide on the number of each product that the company should produce, and the prices the company should charge to maximize its profit. What is the maximum profit? Please round up your computed maximum profit level to the closest integer.
Group of answer choices
between $1200 and $1205
between $1210 and $1215
between $1220 and $1225
between $1230 and $1235
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started