This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 200 units. In addition, once either product is sold, it is removed from inventory and packaged for shipping. This packaging requires B boxes such that q 1 + q 2 = B. All variables are required to be nonnegative. Capital costs 300 per unit, Labor for the first product costs 250 and that for the second product costs 400 per unit. The box costs 50. (1) Write down the Ralph s problem and determine the optimal mix of factors given Ralph plan to produce and sell q 1 = 200 and q 2 = 100. What is the total cost? (2) Determine the shadow price for each constraint. (3) Determine the marginal cost for the first and the second product, respectively....
View Full Document
This note was uploaded on 06/05/2011 for the course ACG 2071 taught by Professor Sumbiznatch during the Spring '06 term at University of Florida.
- Spring '06
- Managerial Accounting