Question
Suppose a particular Automobile plant can build three different models: A, B and C. Model A cars are built at the rate of one
Suppose a particular Automobile plant can build three different models: A, B and C. Model A cars are built at the rate of one per minute, Model B at the rate of one every 2 minutes, and Model C at the rate of one every 3 minutes. The vehicles get 25, 15, and 10 miles per gallon, respectively, and the law mandates that the average fuel economy of vehicles produced be at least 18 miles per gallon. The plant loses $1000 on each Model A, but makes a profit of $5000 on each Model B and $15,000 on each Model C. What is the maximum profit this plant can make in one working day (8 hours)? Hint: How can you write the average fuel economy restriction as a constraint equation? Note that "average" is underlined. method. Solve this problem by using the graphical
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
1st edition
978-0137036059, 133379094, 321566440, 137036051, 9780133379099, 978-0321566447
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