Ask Managerial Economics Expert

problem1)

Solve the following linear programming problem graphically:
maximize   2X1 + 3X2
subject to  X1 <= 8
                  X2 <= 6
                  X1+ 2X2 <= 16
                  X1, X2 >=0

problem2)

In problem 1, how would optimal solution change if restrictions imposed (i.e., the ri’s) were all cut in half?

problem3)

Solve following linear programming problem using general solution method:
minimize C = 3X1 + 4X2
subject to X1 + X2 >= 2
2X1 +4X2 >=5
X1, X2 >= 0

problem4)

Form dual to the linear programming problem presented in problem 3; then solve it to get optimal value of C° . Does minimum value of C° for the primal in Problem 3 equal the maximum value of C°  in dual for this problem?

problem5)

Advertising manager at Cadillac wishes to run both television and magazine ads to promote new Cadillac GTS in the greater Chicago area market. Each 30-second television ad will reach 30,000 viewers in target age group of buyers 35 to 55 years old. Running one full page ad in Cool Driver magazine will reach 10,000 readers in the 35 to 55 year-old target market. To further promote the new GTS, manager wishes to stimulate prospective buyers to come in to Chicago area dealerships to test drive the GTS. Past experience in Chicago indicates that the television ad will generate 500 test drives, whereas the magazine ad will generate only 250 test drives. In order to reach desired level of new-model penetration in the Chicago area, advertising manager believes it is essential to reach at least 90,000 potential buyers in the 35 to 55 age bracket and to get at least 2,000 of these potential buyers to take the test drive. Each 30- second TV ad costs $100,000 and each magazine ad costs $40,000. In reaching these objectives, the manager wishes to minimize the total expenditure on TV and magazine ads.

a) State linear programming problem facing this advertising manager. Be sure to formulate objective function and inequality constraints (including appropriate non-negativity constraints).
b) Solve linear programming problem. What is the optimal number of TV ads and magazine ads? What will be the minimum possible level of total expenditures on television and magazine ads necessary to successfully promote the GTS in Chicago?
c) Suppose the local television stations, in order to reduce set-up costs, require Cadillac to run its ad two or more times. How would this constraint alter the solution to this linear programming problem?

Managerial Economics, Economics

  • Category:- Managerial Economics
  • Reference No.:- M9494

Have any Question? 


Related Questions in Managerial Economics

Topic - cost benefit analysis cba discussion benefits and

Topic - Cost Benefit Analysis (CBA) Discussion: Benefits and Shortcomings of Cost Benefit Analysis As mentioned in the Weekly Introduction, cost benefit analysis is one of the most widely used of all public-sector manage ...

Assignment - portfolio project for the final project you

Assignment - Portfolio Project For the final project, you will create a case study based on a company of your choice. The case study should include at least 5 of the concepts that we have discussed. The case study should ...

I have long thought subway made a monster mistake in their

I have long thought Subway made a MONSTER mistake in their "$5 footlong" campaign, that showed the whole country that they could sell footlong subs for just $5. I think this decreased the value of their brand, and made t ...

Discussion explore applications of pert and cpm in the

Discussion: Explore Applications of PERT and CPM in the Public or Non-Profit Organizations PERT is typically used to manage very large projects. In terms of scale, think weapons systems, the development of interstate tra ...

Queuing theory in the public sectordiscussion queuing

Queuing Theory in the Public Sector Discussion: Queuing Theory and Wait Times For this Discussion, you dive deeper into the topic of queuing. To prepare: Review the Learning Resources for the week as they relate to the t ...

Geographic information systems gisassignment short paper

Geographic Information Systems (GIS) Assignment: Short Paper: GIS In the early years of Geographic Information Systems (GIS) technology, mapping was largely limited to public works, and then in the 1990s and early 2000s, ...

Simulation and agent-based modeling schelling t c 1971

Simulation and Agent-Based Modeling Schelling, T. C. (1971). Dynamic models of segregation. Journal of Mathematical Sociology, 1(2), 143-186. Seminal Retrieved from the Walden Library databases. Discussion: Agent-Based M ...

Question read three 3 academically reviewed articles on

Question: Read three (3) academically reviewed articles on managerial economics and complete the following activities: (500 words) 1. Summarize all three (3) articles. Please use your own words. No copy-and-paste 2. Disc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As