Native Customs Sells Two Popular Styles of Hand-Sewn Footwear: a Sandal

question 28

Essay

Native Customs sells two popular styles of hand-sewn footwear: a sandal and a moccasin.The cost to make a pair of sandals is $18,and the cost to make a pair of moccasins is $24.The demand for these two items is sensitive to the price,and historical data indicate that the monthly demands are given by S = 400 − 10P₁ and M = 450 − 15P₂,where S = demand for sandals (in pairs),M = demand for moccasins (in pairs),P₁ = price for a pair of sandals,and P₂ = price for a pair of moccasins.To remain competitive,Native Customs must limit the price (per pair)to no more than $60 and $75 for its sandals and moccasins,respectively.Formulate this nonlinear programming problem to find the optimal production quantities and prices for sandals and moccasins that maximize total monthly profit.

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Definitions:

Consolidation

The process by which memories become stable in the brain, transforming from a short-term to a long-term state.

Neural Functioning

The operation and activities of neurons, including the transmission of electrical and chemical signals within the brain and throughout the nervous system.

Echoic Memories

A form of sensory memory that retains auditory information for a short period of time.

Implicit Memory

Memory that allows individuals to perform tasks without conscious awareness of these previous experiences.