Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Let {A, B} be two indivisible single unit products, and u1, u2, u3 three interested buyers. The following table depicts how much each buyer is

Let {A, B} be two indivisible single unit products, and u1, u2, u3 three interested buyers. The following table depicts how much each buyer is willing to pay for every subset of products, and the objective of the problem is to maximise the total payments.

A B A,B
u1 5 8 12
u2 9 - 10
u3 - 6 18

Meaning for example that buyer u2 is willing to pay 9 for product A, and 10 for the bundle {A,B}. Notice also that if someone buys A, then the bundle {A,B} cannot be bought by someone else.

a) Model the problem as an integer program.

b) Find by inspection the optimal solution.

c) How do your answers for a) and b) change if buyer u3 has a total budget of 15.

The question does not need more information. Only this information was given.
image text in transcribed
Let {A, B} be two indivisible single unit products, and u1, u2, u3 three interested buyers. The following table depicts how much each buyer is willing to pay for every subset of products, and the objective of the problem is to maximise the total payments. A,B A B ul 5 8 12 u2 9 10 u3 6 18 Meaning for example that buyer u2 is willing to pay 9 for product A, and 10 for the bundle {A,B). Notice also that if someone buys A, then the bundle {A,B} cannot be bought by someone else. a) Model the problem as an integer program. b) Find by inspection the optimal solution. c) How do your answers for a) and b) change if buyer u3 has a total budget of 15. a Let {A, B} be two indivisible single unit products, and u1, u2, u3 three interested buyers. The following table depicts how much each buyer is willing to pay for every subset of products, and the objective of the problem is to maximise the total payments. A,B A B ul 5 8 12 u2 9 10 u3 6 18 Meaning for example that buyer u2 is willing to pay 9 for product A, and 10 for the bundle {A,B). Notice also that if someone buys A, then the bundle {A,B} cannot be bought by someone else. a) Model the problem as an integer program. b) Find by inspection the optimal solution. c) How do your answers for a) and b) change if buyer u3 has a total budget of 15. a

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

Financial & Managerial Accounting

Authors: Carl S. Warren

10th Edition

0324663811, 9780324663815

More Books

Students also viewed these Accounting questions

Question

LO6Outline steps for creating a performance improvement plan.

Answered: 1 week ago