hw03_2008 - UNC-Wilmington ECN 321 Department of Economics...

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Unformatted text preview: UNC-Wilmington ECN 321 Department of Economics and Finance Dr. Chris Dumas Homework 3 (Due Tuesday, 9/23) 1) A Bar Management Problem: Review the "Bar Manager" example of a linear programming problem with two constraints found at the end of the "Consumer Choice I--Optimization & Linear Programming" handout. Suppose that new marketing research reveals that the average customer's preference for beer has been decreasing, and now the average customer likes mixed drinks about four times as much as beer. If all else in the problem remains the same, what will be the solution to the problem? (SHOW ALL THE STEPS OF THE METHOD OF CORNERS IN YOUR SOLUTION) 2) Another Bar Management Problem: Consider again the "Bar Manager" example of a linear programming problem with two constraints found at the end of the "Consumer Choice I--Optimization & Linear Programming" handout. Now suppose that the price of alcohol used in mixed drinks increases, so you decide to raise the price of mixed drinks to $5 each. If all else remains the same, what will be the solution to the problem? (SHOW ALL THE mixed drinks to $5 each....
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This note was uploaded on 10/22/2009 for the course ECN 321 taught by Professor Dumas during the Fall '08 term at University of North Carolina Wilmington.

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