Two women have decided to start a cottage industry that will be run out of their...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Two women have decided to start a cottage industry that will be run out of their homes. They are going to make two types of specialty shirts, handmade beaded shirts and embroidery shirts. The total gross profit is given by p(x, y) = -2x² + 60x-3y² + 72y + 100. The constraint on their profit is a total of 20 shirts. Using this information, answer the following questions: a) Create the Lagrangian equation (2 marks) b) Find the three first order conditions (Lx, Ly, La) (3 marks) c) Solve for the optimal levels of x and y (5 marks) d) Give the economic interpretation of the multiplier 2 in the context of this question (2 marks) e) By how much would profit change if the constraint is increased to 25 shirts. (3 marks) Two women have decided to start a cottage industry that will be run out of their homes. They are going to make two types of specialty shirts, handmade beaded shirts and embroidery shirts. The total gross profit is given by p(x, y) = -2x² + 60x-3y² + 72y + 100. The constraint on their profit is a total of 20 shirts. Using this information, answer the following questions: a) Create the Lagrangian equation (2 marks) b) Find the three first order conditions (Lx, Ly, La) (3 marks) c) Solve for the optimal levels of x and y (5 marks) d) Give the economic interpretation of the multiplier 2 in the context of this question (2 marks) e) By how much would profit change if the constraint is increased to 25 shirts. (3 marks)
Expert Answer:
Answer rating: 100% (QA)
a Create the Lagrangian equation 2 marks ANSWER L 2x60x3y72y 100 20xy Where x number of beaded shirts y number of embroidery shirts Lagrange multiplie... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
You need to hire some new employees to staff your start-up venture. You know that potential employees are distributed throughout the population as follows, but you cant distinguish among them: What...
-
So far at your new job, you have landed nine sales contracts with an average price of $3,782 and a standard deviation of $1,290. a. Identify a reasonable idealized population that this sample...
-
Some data sets include values so high or so low that they seem to stand apart from the rest of the data. These data are called outliers. Outliers may represent data collection errors, data entry...
-
11. Assume that the total cost function (TC) is given by the following equation: TC = 100+ 2.5y + 0.05 y2, where y is output. a. What is the total fixed cost (TFC)? b. What is the average total cost...
-
Three groups of six guinea pigs each were injected, respectively, with 0.5 milligram, 1.0 milligram, and 1.5 milligrams of a new tranquilizer, and the following are the numbers of minutes it took...
-
Juan Cho is a food products engineer who developed an innovative approach for packaging meat. His approach will extend the shelf-life of most meat products by about 30 percent. Juan is preparing to...
-
What are the three basic items all motions must include?
-
For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $349,600. The...
-
24) The size of a euro call is 125,000. Today, a U.S. importer places an order for machine tools that will arrive in Houston in 60 days, when he must pay 4,000,000 to the German exporter. Assume that...
-
For the network of Fig. 7.90, determine: a. VG. b. IDQ and VGSQ c. VD and VS d. V o 20 V 2.2 k 910 k DSS GS. 0 110 k 1.1 k
-
A ball player catches a ball 3.2 s after throwing it vertically upward. Part A With what speed did he throw it? Express your answer using two significant figures. A V = V Submit Request Answer Part B...
-
What is the difference between a business and a pure charity? Between a business and a governmental agency?
-
What is an integrated delivery system?
-
For the following five sequences, what is the consensus sequence? 5GGGAGCG3 5GAGAGCG3 5GAGTGCG3 5GAGAACG3 5GAGAGCA3 a. 5GGGAGCG3 b. 5GAGAGCG3 c. 5GAGTGCG3 d. 5GAGAACG3
-
Do you think that integrated delivery systems will be more or less prevalent in the future? Explain your answer.
-
What are some different types of hospitals, and what trends are occurring in the hospital industry?
-
Maria, who is now 55 yr old, is employed by a firm that guarantees her a pension of $35,000/year at age 65. What is the present value of her first year's pension if the inflation over the next 10 yr...
-
2.) Find the Laplace transform of f(t) 7e-St cos 2t +9 sinh2 2t. Use Laplace Table. %3D
-
For the goods and services tax data of Table 5.5.10: a. Draw a box plot for each variable using the same scale. b. Based on these box plots, comment on the distribution of each variable. TABLE 5.5.10...
-
As production manager, you are responsible for the scheduling of workers and machines in the manufacturing process. At the end of the day, you will learn how many seat covers were produced. a....
-
One weekend when you reduced prices 5%, your store had $58,000 worth of sales. The next weekend, with a 15% reduction, your sales were $92,000. The weekend after that, with a 17.5% reduction, your...
-
Jordan Quinn manages the local homeless shelter. He fears that a trusted employee has been stealing from the shelter. This employee receives cash from supporters and also prepares the monthly bank...
-
Refer to question 6. The balance of Allowance for Uncollectible Accounts, after adjustment, will be a. $ 100 $ 100 . b. $ 200 $ 200 . c. $ 300 $ 300 . d. impossible to determine from the information...
-
Refer to questions 6 and 7. Early the following year, Harper wrote off \(\$ 150\) of old receivables as uncollectible. The balance in the Allowance account is now The next four questions use the...
Study smarter with the SolutionInn App