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The Operations Manager for the Blue Moon Brewing Co \le 480
B)2 L + 4 D

question 17

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The operations manager for the Blue Moon Brewing Co.produces two beers: Lite (L) and Dark (D) .Two of his resources are constrained: production time,which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients) ,of which he can get only 675 gallons each day.To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract,while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract.Profits for Lite beer are $3.00 per keg,and profits for Dark beer are $2.00 per keg.What is the time constraint?


Definitions:

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at the market price.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at a given price.

Tax Revenue

Income that is gained by governments through taxation, used to fund public services and government obligations.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, typically downward sloping to the right.

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