Question
Problem: A firm produces two products: 1 and 2. The quantities it produces of each product are given as x1 and x2. The firm can
Problem: A firm produces two products: 1 and 2. The quantities it produces of each product are given as x1 and x2. The firm can sell x1 for $4 in the market and it can sell x2 for $7. The way the firm is set up, production must meet the following constraints:x1 >= 10, x2 >= 0 and 5*x1 + x2 <= 100. Find the values of x1 and x2 that maximize total revenue (sum of price*units sold across goods) for the firm given these constraints. Use Solver.Let the 'initial value' of x1 and x2 both be 1.
Value of x1:
Value of x2:
Revene from sales of 1:
Revenue from sales of 2: T
Total revenue:
Constraint: 5*x1 + x2 <=100:
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