A firm decides to invest x units of capital in project A and y units in project B. The expected return for 1 unit of investment is $400 in project A and $800 in project B. However, in order to meet the expectations of the firm's ethical and environmental policy, the values of x and y must satisfy the constraint x + y? - 4x – 6y = 67

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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A firm decides to invest x units of capital in project A and y units in project B. The expected return for 1 unit of investment is $400 in project A and $800 in project B. However, in order to meet the expectations of the firm’s ethical and environmental policy, the values of x and y must satisfy the constraint
x2 + y2 − 4x − 6y = 67
How many units of each type should the firm buy in order to maximize total return?

A firm decides to invest x units of capital in project A and y units in project B. The
expected return for 1 unit of investment is $400 in project A and $800 in project B.
However, in order to meet the expectations of the firm's ethical and environmental
policy, the values of x and y must satisfy the constraint
x + y? – 4x – 6y = 67
How many units of each type should the firm buy in order to maximise total return?
Transcribed Image Text:A firm decides to invest x units of capital in project A and y units in project B. The expected return for 1 unit of investment is $400 in project A and $800 in project B. However, in order to meet the expectations of the firm's ethical and environmental policy, the values of x and y must satisfy the constraint x + y? – 4x – 6y = 67 How many units of each type should the firm buy in order to maximise total return?
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