A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheatbread(B) with raw wheat (W). The production functions are:Cereal: C = 28WC - 1.5WcBread: B = 65WB - 2WB2Constraint: WC + WB = 4144Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 4,144 units of rawwheat available. How much wheat should go to the cereal (WC)?

Answered: Image /qna-images/answer/d7d1ce07-50c1-4e24-acab-4209860eaaaf.jpg

bread(B) with raw wheat (W). The production functions are: Cereal: C = 28WC – 1.5WC2 Bread: B = 65WB - 2WB2 Constraint: WC + WB = 4144 Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 4,144 units of rav wheat available How much wheat should go to the cereal (Wc)?

bread(B) with raw wheat (W). The production functions are: Cereal: C = 28WC – 1.5WC2 Bread: B = 65WB - 2WB2 Constraint: WC + WB = 4144 Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 4,144 units of rav wheat available How much wheat should go to the cereal (Wc)?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 2.4CE

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Question

A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat
bread(B) with raw wheat (W). The production functions are:
Cereal: C = 28WC - 1.5Wc
Bread: B = 65WB - 2WB2
Constraint: WC + WB = 4144
Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 4,144 units of raw
wheat available. How much wheat should go to the cereal (WC)?

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