Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help! 8a,b,c MUST SHOW YOUR WORK LEADING TO YOUR ANSWERS IN ORDER TO RECEIVE FULL CREDIT FOR THE QUESTION. Scenario: For being such good students,

image text in transcribed

help! 8a,b,c

MUST SHOW YOUR WORK LEADING TO YOUR ANSWERS IN ORDER TO RECEIVE FULL CREDIT FOR THE QUESTION. Scenario: For being such good students, Halimi is treating you to Pizza and Beer. Each student is given a $50.00 Downtown Chico Gift Card to purchase slices of Pizza and cold glasses of Beer. A slice of Pizza costs $3.50, while a cold glass of Beer costs $5.00. Halimi is concerned that you may spend it all on Beer, since you get 3 units of Utility from a glass of Beer and only 1 unit of Utility from a slice of Pizza. To make sure you don't end up with a hangover, Halimi has restricted you to consuming at least one slice of Pizza for every two glasses of Beer. Objective: You want to maximize your Utility and want to find out how many slices of Pizza (P) and how many glasses of Beer (B) to order (no partial glasses of Beer or partial slices of Pizza sold). 1. Define your Decision Variables - 2 Points 2. State the Objective Function - 3 Points 3. State the Constraint Equations - 6 Points 4. Solve by Corner Point Solution Method a. State all the Corner Coordinates - 4 Points b. Show which Corner is the optimal solution - 2 Points 5. State the optimum number of slices of Pizza and number of glasses of Beer to order -4 Points 6. How many units of Utility will you end up with?- 2 Points 7. Calculate the Slack-2 Points 8. If you could borrow some money to add to your Slack and use it to increase your Utility, answer the following questions: a. What is the minimum you would want to borrow?- 2 Points b. What would you do with the amount borrowed? - 2 Points c. What would be the marginal Utility gained per dollar borrowed? - 1 Points

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essential Controller An Introduction To What Every Financial Manager Must Know

Authors: Steven M. Bragg

2nd Edition

1118169972, 9781118169971

More Books

Students also viewed these Accounting questions

Question

Explain how to handle conflict effectively.

Answered: 1 week ago

Question

What are the organizations reputation goals on this issue?

Answered: 1 week ago

Question

What change do you need to make to achieve the desired position?

Answered: 1 week ago