Question: im not understand this question 2. Meredith wants to maximize her profits from selling items for the Aggie REPS. She can earn $5 profit for

im not understand this question

im not understand this question 2. Meredith wants to maximize her profits

2. Meredith wants to maximize her profits from selling items for the Aggie REPS. She can earn $5 profit for selling fleeces and $7 profit for selling t-shirts. She is limited by his time; it takes 2 hours to make a sale of a fleece and 4 hours for a t-shirt, while she only has 40 hours to devote to sales. Meredith is also subject to the limits of the manufacturer. They have a limit of 42 hours to make the items with fleeces taking 6 hours and t shirts taking 3 hours. Meredith must sell at least 3 fleeces to keep her position with the Aggie REPS. a) What is the standard format for this problem? b) How many fleeces and t-shirts will Meredith sell? How much money will she make? c) What is the shadow price on manufacturing? What does this value mean? d) What is a one sentence interpretation of the reduced cost of fleeces

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!