A Rectangular Corral with a Total Area of 60 Square

question 88

Multiple Choice

A rectangular corral with a total area of 60 square meters is to be fenced off and then divided into 2 rectangular sections by a fence down the middle. The fencing for the outside costs $9 per running meter, whereas that for the interior dividing fence costs $12 per running meter. Which of the following statements hold, if the cost (c) of the fencing is to be maximized? (I) The constraint equation is 3w + 2 l = 60 .
(II) The objective equation is 2l ∙ w = 60 .
(III) The constraint equation is w ∙ l = 60 .
(IV) The objective equation is C = 30w + 18l .
(V) The constraint equation is C = 12w + 9wl .
(VI) The objective equation is C = 60 - lw .

• A) III and IV
• B) V and VI
• C) I and II
• D) none of these

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Definitions:

Marginal Cost

The rise in overall expenses resulting from the production of an extra unit of a product or service.

Elasticity of Demand

The degree to which the quantity demanded of a good or service varies with its price. Generally, a high elasticity indicates that demand is sensitive to price changes.

Inverse Demand Curve

Another term for the inverse demand function, it graphically represents how price depends on the quantity demanded, illustrating the relationship inverse to the demand curve.

Total Revenue

The total amount of money received by a company from selling goods or services before any expenses are deducted.