The Salt Creek Soap Company Has Determined the Following Nonlinear

question 19

Multiple Choice

The Salt Creek Soap Company has determined the following nonlinear model to determine the optimal pounds of industrial soap (X1) and shampoo (X2) it should produce each day.
Maximize Z = X1² + 2X2² - 8X1 - 12X₂ + 34
Subject to: X₁ + 2X₂ = 4 lbs
-What quantities of soap and shampoo maximize profit?

• A) X₁ = 0, X₂ = 2
• B) X₁ = 1, X₂ = 2
• C) X₁ = 2, X₂ = 2
• D) X₁ = 2, X₂ = 1

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Definitions:

Inefficient Manner

Performance or operation in a way that does not achieve the best possible outcome or wastes resources.

Marginal Revenue

The supplementary income generated through the sale of one extra unit of a good or service.

Output

The total amount of goods or services produced by a company, industry, or economy in a given period.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.