A Company Needs to Purchase Several New Machines to Meet

question 70

Essay

A company needs to purchase several new machines to meet its future production needs. It can purchase three different types of machines A, B, and C. Each machine A costs $80,000 and requires 2,000 square feet of floor space. Each machine B costs $50,000 and requires 3,000 square feet of floor space. Each machine C costs $40,000 and requires 5,000 square feet of floor space. The machines can produce 200, 250 and 350 units per day respectively. The plant can only afford $500,000 for all the machines and has at most 20,000 square feet of room for the machines. The company wants to buy as many machines as possible to maximize daily production.
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Formulate the LP for this problem.

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Definitions:

High-Income Households

Families or individuals with earnings significantly above the average for a given area, often associated with higher consumption and investment capacities.

Stimulus Program

A government initiative designed to stimulate economic growth during a recession by increasing public spending or cutting taxes.

Tax Multipliers

Measures the impact of changes in taxes on the overall economic output, indicating how tax changes affect GDP.

Spending Multipliers

Describe the effect of a change in spending (typically by the government) on the total economic output, indicating how initial spending leads to increased levels of income and consumption.