Pong Brewery produces beer and ale. Beer sells for $5 a barrel, and ale sells for $1.50 a barrel. Producing a barrel of beer requires 5 pounds of corn and 2 pounds of hops. Producing a barrel of ale requires 2 pounds of corn and 1 pound of hops. The brewery has 60 pounds of corn and 25 pounds of hops.

a) How many barrels of beer and ale should the brewery produce in order to maximize revenue?

b) What is the shadow price for corn? Interpret your answer. Explain why the shadow price for hops is zero.

c) Explain why the reduced cost for beer is zero. Interpret the reduced cost for ale.

b) Confirm graphically that your solution to a) is optimal. You do not need to submit your answer to this part of the question. You may want to take a look at the graphical solution for Lucrezia's problem as well as PMS Example 3.1.