What is the profit maximizing combination of prices of vegetables sold double to $50? What is the profit maxi

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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What is the profit maximizing combination of prices of vegetables sold double to $50? What is the profit maximizing combination of price the fruit sold decreased to $12?
(2)
Cases of
Canned Fruit
Cases of
Canned
Vegetables
135,000
O
Table 7-3
PROFIT-MAXIMIZING COMBINATION OF PRODUCTS FOR SUNSPOT
(1)
(3)
Revenue, $33.33 x (1)
+ $25.00 x (2)
$4,499,550
(4)
Marginal Rate of
Product
Transformation,
A(1) ÷ A(2)
(5)
Ratio of Price of
Vegetables
to the Price of Fruit,
$25.00 $33.33
128,000
10,000
4,516,240
-0.70
0.75
119,000
20,000
4,466,270
-0.90
0.75
108,000
30,000
4,349,640
-1.10
0.75
95,000
40,000
4,166,350
-1.30
0.75
80,000
50,000
3,916,400
-1.50
0.75
63,000
60,000
3,599,790
-1.70
0.75
44,000
70,000
3,216,520
-1.90
0.75
23,000
80,000
2,766,590
-2.10
0.75
0
90,000
2,250,000
-2.30
0.75
Transcribed Image Text:(2) Cases of Canned Fruit Cases of Canned Vegetables 135,000 O Table 7-3 PROFIT-MAXIMIZING COMBINATION OF PRODUCTS FOR SUNSPOT (1) (3) Revenue, $33.33 x (1) + $25.00 x (2) $4,499,550 (4) Marginal Rate of Product Transformation, A(1) ÷ A(2) (5) Ratio of Price of Vegetables to the Price of Fruit, $25.00 $33.33 128,000 10,000 4,516,240 -0.70 0.75 119,000 20,000 4,466,270 -0.90 0.75 108,000 30,000 4,349,640 -1.10 0.75 95,000 40,000 4,166,350 -1.30 0.75 80,000 50,000 3,916,400 -1.50 0.75 63,000 60,000 3,599,790 -1.70 0.75 44,000 70,000 3,216,520 -1.90 0.75 23,000 80,000 2,766,590 -2.10 0.75 0 90,000 2,250,000 -2.30 0.75
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