In a production process model such as Repco’s, certain inputs make no sense in the usage table (the range B7:D9 of the model). For example, suppose that, in addition to current usages, each unit of drug A requires one unit of drug C. Why does this result in a nonsensical problem? What happens if you run Solver on it anyway? What happens if you run Solver on it after adding a constraint that the sum of the units produced (over all three drugs) must be at least 1?
=B7*Price2^C7 in cell B11. (To minimize range name conflicts, we used the names Price1, Unit_cost1, and Profit1 for the linear demand model, and we used Price2, Unit_cost2, and Profit2 for the constant elasticity model.)
=(B9-C9)^2 in cell D9 and copying it down to cell D13.
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