Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Suppose you have a bounded feasible region with corner points (0,7),(3,4),(9,1), and (12,0). Find the minimum of the objective function C=3x+4y
on this feasible region, as well as where it occurs.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps with 1 images
Knowledge Booster
Similar questions
- Restaurateur Denny Valentine is evaluating two sites, Raymondville and Rosenberg, for his next restaurant. He wants to prove that Raymondville residents (population 1) dine out more often than Rosenberg residents (population 2). Denny plans to test this hypothesis using a random sample of 81 families from each suburb. His null hypothesis is:arrow_forwardThe average number of operational losses in a year at a particular plant is 18, so the number of losses in a year is distributed Poisson, with mean 18.) Given the distribution parameter from the previous question: What is the average number of weeks between operational losses (assume 52 weeks per year)? What is the probability that two operational losses will occur within two weeks of each other (i.e., given an operational loss today, what’s the probability the next one will happen in less than two weeks)?arrow_forward9. The East Chester Tribune must decide whether to publish a Sunday edition. The publisher thinks the probability is 0.6 that a Sunday edition would be a success and 0.4 that it would be a failure. If it is a success, she will gain $100,000. If it is a failure, she will lose $80,000. a. Construct a decision tree corresponding to the problem, and use backward induction to solve the problem. (Assume that the publisher is risk-neutral.) b. List all forks in the decision tree you constructed; then indicate whether each is a decision fork or a chance fork and state why.arrow_forward
- Consider a cheap talk game in which Nature chooses the sender’s type andthere are three feasible types: x, y, and z, which occur with probability 1/4, 1/4,and 1/2, respectively. The sender learns her type and then chooses one of fourpossible messages: m1, m2, m3, or m4. The receiver observes the sender’smessage and chooses one of three actions: a, b, or c. The payoffs are shown in the table below. a. Suppose the sender’s strategy is as follows: (1) if the type is x, thenchoose message m1, and (2) if the type is y or z, then choose messagem2. The receiver’s strategy is the following: (1) if the message is m1,then choose action a; (2) if the message is m2, then choose action b;and (3) if the message is m3 or m4, then choose action a. For appropriatelyspecified beliefs for the receiver, show that this strategy pair is aperfect Bayes–Nash equilibrium.b. Find a separating perfect Bayes–Nash equilibrium.arrow_forwardB & Carrow_forwardConsider a buying firm and a supplier negotiating terms for a contract. Suppose the Marginal Benefit to the buying firm of additional contract provisions in a contract (x) to the firm is: MB = 20,000 – 400x. Suppose the Marginal Cost to the buying firm of additional contract provision to the firm is: MC = 100x. What is the optimal number of contract provisions? Reconsider the previous question. If the maximum value (or price) of the contract that the buying firm is willing to pay for is $3,000, what would you expect the firm to do? a) Use the spot market b) Vertically integrate c) Continue to contract d) engage in holduparrow_forward
- Determining Margin Potential Finding the maximum amount of profit you can generate from one unit of a product is called Margin Potential. This is useful for a company when making a decision about whether to go into production or not. In its simplest form, you can calculate Margin Potential as: Margin Potential = Maximum Price - Minimum Unit Costs Price Use the information table below to find the maximum price that customers deem acceptable. You can find this in the Customer Buying Criteria for each segment. Minimum Material Cost Calculate the minimum Material Cost per segment using the following equation and table below: Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Material Cost Minimum Labor Cost Calculate the minimum Labor Cost for each segment. Assume a base labor cost of $11.20 ($11.20 is a rough estimate of labor cost used solely to illustrate the Margin Potential Concept). Minimum Labor Cost = [$11.20 - (1.12 * Automation Ratings Below)] + 1.12…arrow_forwardAndy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass producing the dolls to sell in stores. He estimates that the initial investment for plant and equipment will be $10,000, while labor, material, packaging, and shipping will be about $8 per doll. He has determined that monthly sales volume is related to price, according to the following equation: v=5000-90p. Develop the nonlinear profit function as a function of price.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON