-4. If you will like to produce the same output since it cost more than ₂ to acquire, how many

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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You are the operations manager for a production company. You are given the technical rate of
substitution between factors ₂ and ₁ as -4. If you will like to produce the same output but you
want to decrease the use of ₁ by 2 units since it cost more than 2 to acquire, how many
additional units of 2 will be required?
Transcribed Image Text:You are the operations manager for a production company. You are given the technical rate of substitution between factors ₂ and ₁ as -4. If you will like to produce the same output but you want to decrease the use of ₁ by 2 units since it cost more than 2 to acquire, how many additional units of 2 will be required?
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