A farmer wants to maximize the revenue resulting from the production and harvesting of corn and wheat. For every 100 bushels of corn he produces he receives $265 and for every 100 bushels of wheat he produces he receives $365. However, his production is restricted by the availability of land, capital, and labor. For example, he needs one acre to produce 100 bushels of corn and three acres to produce 100 bushels of wheat, and he can plant a to- tal of 100 acres with these crops. The following table shows the availability of resources and the restrictions placed upon them. Land (acre) Capital (S) Aug. labor (h) Sept. labor (h) Value of output of 100 bushels (S) Input requirements per 100 bushels of Wheat 3 90 2 6 Corn 1 120 1 1 265 365 Available Material 100 9000 200 160 Show the farmer how he can maximize his revenue ie: how many bushels of corn and wheat will maximize his revenue.

A farmer wants to maximize the revenue resulting from the production and harvesting of corn and wheat. For every 100 bushels of corn he produces he receives $265 and for every 100 bushels of wheat he produces he receives $365. However, his production is restricted by the availability of land, capital, and labor. For example, he needs one acre to produce 100 bushels of corn and three acres to produce 100 bushels of wheat, and he can plant a to- tal of 100 acres with these crops. The following table shows the availability of resources and the restrictions placed upon them. Land (acre) Capital (S) Aug. labor (h) Sept. labor (h) Value of output of 100 bushels (S) Input requirements per 100 bushels of Wheat 3 90 2 6 Corn 1 120 1 1 265 365 Available Material 100 9000 200 160 Show the farmer how he can maximize his revenue ie: how many bushels of corn and wheat will maximize his revenue.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section7.3: Pricing Models

Problem 3P: Pricing Decisions at Madison The Madison Company manufactures and retails a certain product. The...

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