A School Is Trying to Determine a Nutritional Diet to Feed

question 79

Multiple Choice

A school is trying to determine a nutritional diet to feed its students.The school would like to offer some combination of milk and beans.The school's objective is to minimize cost,subject to meeting the minimum nutritional requirements of protein,calcium,and calories.The cost and nutritional content of each food,along with the minimum nutritional requirements are shown here. $$\begin{array} { | l | l | l | l | } \hline \text { Nutrient } & \begin{array} { l } \text { Kidney } \\\text { Beans }\end{array} & \text { Tofu } & \begin{array} { l } \text { Minimum Daily } \\\text { Requirement }\end{array} \\\hline \text { Cost per pound } & \$ 0.90 & \$ 1.50 & \\\hline \begin{array} { l } \text { Calcium in units per } \\\text { pound }\end{array} & 15 & 6 & 30 \\\hline \text { Protein in units per pound } & 10 & 10 & 40 \\\hline \begin{array} { l } \text { Calories in units per } \\\text { pound }\end{array} & 3 & 9 & 18 \\\hline\end{array}$$ At the optimum solution,what is the cost of tofu in the diet?

• A)$0.95
• B)$1.22
• C)$2.65
• D)$1.50

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Definitions:

Price Discrimination

The practice of selling the same product or service at different prices to different buyers, based on what the seller believes each market segment can afford.

Monopolistic Competitor

Refers to a market structure in which many firms sell products that are similar but not identical, allowing for elements of competition along with some degree of market power for each firm.

Physical Differences

Variations in the material, size, weight, or other physical properties of products or entities.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to change.