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The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D) . He can only get 675 gallons of malt extract per day for brewing and his brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg.
-What is the objective function?
Price Reduced
A decrease in the selling price of a product or service.
Patents and Licenses
Legal mechanisms that grant inventors exclusive rights to their inventions, and permissions required to engage in certain activities or businesses.
Barrier to Entry
Economic, procedural, regulatory, or technological conditions that obstruct or restrict new competitors from easily entering an industry or area of business.
Near Monopolies
Near monopolies refer to markets where one or a few companies dominate, significantly limiting competition.
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