Question
The ELC Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator
The ELC Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 5 hours of wiring and 2hour of testing and can be sold for a $420 profit. Each alternator requires 2 hours of wiring and 1 hours of testing and can be sold for a $260 profit. There are 400hours of wiring time and 300hours of testing time available in the next production period and ELC wants to maximize profit.
What is the shadow price of hours of testing? What is the shadow price on hours of wiring?
What is the optimal number of alternators? What is the optimal number of generators?
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