Solve the Following Problem Graphically $\le$ 48
7X + 5Y $\ge$ 35
X, Y

question 6

Essay

Solve the following problem graphically.
Max
X + 2Y
s.t.
6X + 8Y $\le$ 48
7X + 5Y $\ge$ 35
X, Y $\ge$ 0
Y integer
a.Graph the constraints for this problem.Indicate all feasible solutions.
b.Find the optimal solution to the LP Relaxation.Round down to find a feasible integer solution.Is this solution optimal?
c.Find the optimal solution.

Understand the differences between industry and individual firm demand curves in perfect competition.

Identify the profit-maximizing/loss-minimizing level of output.

Recognize barriers to entry and exit in perfect competition, such as licenses, contracts, and patents.

Interpret short-run and long-run profit scenarios for firms in perfect competition.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.

Net Present Value

A calculation used in finance that measures the profitability of an investment by summing the present values of its cash flows minus initial investment.

Initial Investment

The initial amount of money put into a project or venture to start its operations.

Required Return

Required return is the minimum expected return an investor seeks for an investment, considering its risk level.