A manufacturer of two products (Widgets and Gadgets) makes a profit of $180 for each widget sold and $180 for each gadget sold. However, production of these products generates hazardous waste charges at the rate of 3W² (where Wis the number of Widgets produced) and 2G2 (where G is the number of Gadgets produced). The manufacturer has ample supplies of all raw materials and can sell all the Widgets and Gadgets it produces. The firm has sufficient capacity to produce any realistic quantity of both products. What is the optimal quantity of each product to produce? (Round your answers to 1 decimal place.) Widgets and Gadgets

A manufacturer of two products (Widgets and Gadgets) makes a profit of $180 for each widget sold and $180 for each gadget sold. However, production of these products generates hazardous waste charges at the rate of 3W² (where Wis the number of Widgets produced) and 2G2 (where G is the number of Gadgets produced). The manufacturer has ample supplies of all raw materials and can sell all the Widgets and Gadgets it produces. The firm has sufficient capacity to produce any realistic quantity of both products. What is the optimal quantity of each product to produce? (Round your answers to 1 decimal place.) Widgets and Gadgets

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section7.3: Pricing Models

Problem 3P: Pricing Decisions at Madison The Madison Company manufactures and retails a certain product. The...

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