Creatine and Protein Are Common Supplements in Most Bodybuilding Products

question 39

Essay

Creatine and protein are common supplements in most bodybuilding products.Bodyworks,a nutrition health store,makes a powder supplement that combines creatine and protein from two ingredients (X₁ and X₂).Ingredient X₁ provides 20 grams of protein and 5 grams of creatine per pound.Ingredient X₂ provides 15 grams of protein and 3 grams of creatine per pound.Ingredients X₁ and X₂ cost Bodyworks $5 and $7 per pound,respectively.Bodyworks wants its supplement to contain at least 30 grams of protein and 10 grams of creatine per pound and be produced at the least cost.
Determine what combination will maximize profits.

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Definitions:

Unregulated Monopoly

A market structure where a single seller controls the entire market for a product or service, with no governmental restrictions in place.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

Profit-maximizing

A company's goal to achieve the highest possible profit where the marginal cost of production is equal to the marginal revenue from sales.

Market Demand

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