Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Southern Oil Company produces two grades of gasoline: regular and premium. The profit contributions are $0.30 per gallon for regular gasoline and .50 per gallon for premium gasoline. Each gallon of regular gasoline contains 0.3 gallons of grade A crude oil and each gallon of premium gasoline contains 0.6 gallons of grade A crude oil. For the next production period, Southern has 18000 gallons of grade A crude oil. The refinery used to produce the gasolines has production capacity of 50,000 gallons for the next production period. Southern Oil's distributors have indicated that demand for the premium gasoline for the next production period will be at most 20,000 Gallons.

A. Formulate a linear programming model that can be used to determine the number of gallons of regular gasoline and the number of gallons of premium gasoline that should be produced to maximize total profit contribution.

B. What is the optimal solution?

C. What are the values and interpretations of the slack variables?

D. What are the binding constraints?

IMPORTANT: Solve the problem using excel solver.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9895694
  • Price:- $40

Priced at Now at $40, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question assume that in long-run equilibrium the minimum

Question: Assume that in long-run equilibrium the minimum point of the LRAC curve for a table manufacturer's tables in $200 per table. Under conditions of monopolistic competition, will the long-run price of a table be a ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question a deposit of 1000 is planned for the end of each

Question: A deposit of 1000 is planned for the end of each year into an account paying 6% per compounded annually. The deposits were not made in years 8 and 9 but were made each year until year 30 for all other years. Wh ...

Question in the early stages of recovery the sampp 500 and

Question: In the early stages of recovery, the S&P 500 and other broad-based stock market indexes generally rose at least 25%. Yet in the months of the first three quarters of 2002, these indexes dropped over 30%. Why di ...

Question corporate directors are either insiders who hold

Question: Corporate directors are either insiders who hold (or have held) important positions within the company or outsiders who have achieved distinction elsewhere. a. Why do you as a shareholder probably prefer that t ...

Question in an effort to move the economy out of recession

Question: In an effort to move the economy out of recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the action the government would take to ...

Question in mid-2002 it was announced that one of the

Question: In mid-2002, it was announced that one of the leading bond funds managed by PIMCO now had more assets under management than the Fidelity Magellan Fund. Discuss the pros and cons of investors switching their ass ...

Question what economic factors would affect a firms desire

Question: What economic factors would affect a firm's desire to enter and exit a market? What are the market signals that would tell a firm that it is profitable to enter or exit? If possible, use a real-world example fr ...

Question the fence between two farmers properties has

Question: The fence between two farmer's properties has fallen down, the cost of having it replaced is $1,000. This causes problems for both as one farmers sheep keeps straying onto the other farmer's property and eating ...

Question the discussion answers must be a minimum of 125

Question: The discussion answer(s) must be a minimum of 125 words of substance with any references cited in APA format. No copying and pasting of work previously done for someone else. Identify a firm which operates in m ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved