An Investor Has $500,000 to Invest and Wants to Maximize

question 39

Essay

An investor has $500,000 to invest and wants to maximize the money they will receive at the end of one year.They can invest in condos,apartments and houses.The profit after one year,the cost and the number of units available are shown below.
$\begin{array}{rrrrr}&&\text { Profit } & \text { Cost } & \text { Number } \\\text { Variable } & \text { Investment } &\$ 1,000)&\$ 1,000) & \text { Available }\\\hline \mathrm{X} 1 & \text { Condos } & 6 & 50 & 10 \\\mathrm{X} 2 & \text { Apartments } & 12 & 90 & 5 \\\mathrm{X} 3 & \text { Houses } & 9 & 1 \mathrm{nn} & 7\end{array}$
Based on this ILP formulation of the problem what formulas should go in cells E5:E12 of the following Excel spreadsheet?
MAX: ^{6 X}₁ ^{+ 12 X}₂ ^{+ 9 X}₃
Subject to: ^{50 X}₁ ^{+ 90 X}₂ ^{+ 100 X}₃ ^{? 500}
X₁ ? 10
X₂ ? 5
X₃ ? 7
Xi ? 0 and integer

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Definitions:

Upstream Firms

Companies involved in the initial stages of production or service provision, typically involving the extraction or production of raw materials.

Market Power

The ability of a company to influence or control prices and market conditions within an industry due to its size or market share.

Vertical Relationships

Connections between companies or entities at different stages of the production process, often involving suppliers and buyers.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers.