All Optimization Problems Have

question 14

Multiple Choice

All optimization problems have:

• A) an objective function and decision variables
• B) an objective function and constraints
• C) decision variables and constraints
• D) an objective function,decision variables and constraints
• A company produces two products.Each product can be produced on either of two machines.The time (in hours)required to produce each product on each machine is shown below:
• Machine 1
• Machine 2
• Product 1
• 5
• 4
• Product 2
• 8
• 5
• Each month,600 hours of time are available on each machine,and that customers are willing to buy up to the quantities of each product at the prices that are shown below:
• ​
• Demands
• Prices
• Month 1
• Month 2
• Month 1
• Month 2
• Product 1
• 120
• 200
• $60
• $15
• Product 2
• 150
• 130
• $70
• $35
• ​
• The company's goal is to maximize the revenue obtained from selling units during the next two months.

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Definitions:

Equilibrium Price

This is the price at which the quantity of goods supplied matches the quantity of goods demanded, resulting in market equilibrium.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity demanded by consumers at those prices.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable by holding other influencing factors constant.

Equilibrium Price

The market price at which the supply of an item equals the demand for the same item.