A Cruise Line Is Planning Its Menu for the Next

question 61

Essay

A cruise line is planning its menu for the next trip. Vacationers like eating steak, lobster, and chicken. The cruise line has decided to plan for at least half of all booked passengers to have a steak dinner, for at least a quarter of all passengers to have lobster, and the rest to have chicken. Steak dinners cost the company $8, lobsters cost $15, and chicken costs the line $4. On the next cruise, there are 400 passengers booked. In addition, the cruise line has decided to plan for an additional 25% more meals than bookings. Formulate the appropriate linear program.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer benefit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, typically viewed as a measure of producer welfare.

Consumer Surplus

The divergence between the sum consumers are prepared to pay for a product or service and the sum that is actually paid.