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Question 11: Sabolai LLP produces two types of cowboy hats. A Type 1 hat requires twice as much labour time as a Type 2. If

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Question 11: Sabolai LLP produces two types of cowboy hats. A Type 1 hat requires twice as much labour time as a Type 2. If all the available labour time is dedicated to Type 2 alone, the company can produce a total of 400 Type 2 hats a day. The respective market limits for the two types are 150 and 200 hats per day. The revenue is $8 per Type 1 hat and $5 per Type 2 hat. a) Use the Computer Method to determine the number of hats of each type that maximizes revenue. b) Determine the Dual Price of the production capacity (in terms of the Type 2 hat). c) If the daily demand limit on the Type 1 hat is decreased to 120, what would be the effect on the optimal revenue? d) What is the Dual Price of the market share of the Type 2 hat

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