It Costs Extel $25 Per Chip to Make Its E86

question 26

Essay

It costs Extel $25 per chip to make its E86 chip used in notebook and other personal computers.Extel can sell all the chips it manufactures using a unit pricing model of ($60 - $0.01X) where X is the daily production of the chip.Fixed daily production costs are $700.A.Formulate an unconstrained nonlinear model that models Extel's
daily profit for its E86 chip.
B.What should be Extel's daily production of the chip, its price,
and the daily profit from producing the chip?
C.Suppose its capacity to make chips is limited to 2000 per day.
What should be Extel's daily production of the chip, its price, and the daily profit from producing the chip?
D.Suppose its capacity to make chips is limited to 1500 per day.
What should be Extel's daily production of the chip, its price, and the daily profit from producing the chip?
E.Write the Kuhn-Tucker conditions for the model for part D, and show that your solution satisfies these conditions.

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Definitions:

Secured Party's Remedies

Legal actions or measures available to a secured party to enforce rights against a debtor in case of default.

Debtor Defaults

A situation where a debtor is unable to meet the legal obligation of debt repayment.

After-Acquired Property

Property acquired by a debtor after the execution of a security agreement, which may still be subject to claims by secured creditors under certain agreements.

Secured Perfected Creditor

This term relates to a creditor who has taken the necessary legal steps to secure a lien against a debtor's property, ensuring a strong claim to the property in the event of default.