This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: e) SP for Market for I= f) Suppose the shadow prices are Engineer A: 20 E + 5 I <= 2400 minutes $0/min Engineer B: 15 E + 30 I <= 2400 minutes $3/min Demand for E: E <= 100 units $0/unit Demand for I: I <= 50 units $30/unit Compute the MC E = Reduced cost for E: Compute MC I = Reduced cost for I: h) To produce or not to produce a new product, Wireless modem? Assume, no cannibalization. The new product W needs 10 min from A, 10 minutes from B, and sells for $45/unit. Should we produce W?...
View
Full
Document
This note was uploaded on 08/10/2011 for the course BUSQOM 0050 taught by Professor Glowackia during the Spring '08 term at Pittsburgh.
 Spring '08
 Glowackia

Click to edit the document details