Company TKK Corporation, a Large Conglomerate, Has Three Subsidiaries Engaged

question 149

Short Answer

Company TKK Corporation, a large conglomerate, has three subsidiaries engaged in producing raw rubber, manufacturing tires, and manufacturing other rubber-based goods. The production of 1 unit of raw rubber requires the consumption of 0.02 unit of rubber, 0.05 unit of tires, and 0.01 unit of other rubber-based goods. To produce 1 unit of tires requires 0.8 unit of raw rubber, 0.04 unit of tires, and 0 units of other rubber-based goods. To produce 1 unit of other rubber-based goods requires 0.3 unit of raw rubber, 0.02 unit of tires, and 0.07 unit of other rubber-based goods. Market research indicates that the demand for the following year will be $300 million for raw rubber, $500 million for tires, and $120 million for other rubber-based products. Suppose the demand for raw rubber increases by 10%, the demand for tires increases by 20%, and the demand for other rubber-based products decreases by 10%. Find the level of production for each subsidiary in order to satisfy this demand. Round the answers to the nearest tenth.
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$ __________ million worth of raw rubber
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$ __________ million worth of tires
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$ __________ million worth of other rubber-based goods

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Definitions:

Language Acquisition Device

A hypothetical module of the human mind posited to account for children's innate ability to acquire language rapidly as proposed by linguist Noam Chomsky.

Chomsky

Refers to Noam Chomsky, an influential linguist and cognitive scientist known for his theories on language acquisition.

Grammar

A group of established principles that control the formation of words, phrases, and clauses in a particular natural language.

Reduced Risk

Pertains to lowering the likelihood or severity of potential negative outcomes or harms.