It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then machines can be produced. Suppose the company...


It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then
machines can be produced. Suppose the company has $10,000 to purchase labor and capital.


a. What is the maximum number of machines it can produce?


b. Use SolverTable to see how a change in the price of labor changes the optimal solution.


c. Use SolverTable to see how a change in the price of capital changes the optimal solution.


d. Use SolverTable to see how a change in the amount of money available changes the optimal solution.



May 25, 2022
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