Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

A firm can produce 2 types of a certain product, namely basic B and deluxe D. The estimated profit per unit is $10 basic and$ 15 deluxe.

A firm can produce 2 types of a certain product, namely basic B and deluxe D. The estimated profit per unit is $10 basic and$ 15 deluxe.

The firm has 60 hours of labour available per day and 100 units of capital. Each unit of basic product B requires 2 hours of labour and 4 units of capital. Each unit of the de-luxe product D requires 4 hours of labour and 5 units of capital.

Labour and capital cannot be negative.

How much of each type of product should the firm produce in order to maximize profit?

1. Define the objective function for a firm and the decision variables