Technological Institute of Merida

Department of Industrial Engineering

Analysis of the national reality Unit 1 ADA 1 August 29, 2019 Group: ________
Professor: Joaquín Cantillo Palma

Solve the following exercises and problems

1. The company you direct has invested 15 million pesos in research and
development to launch a device on the market that will improve efficiency in electrical
energy consumption. To date, the development of the prototype has not been
completed. In a recent work meeting, the sales director commented that the
competition has been ahead of them and has placed a device similar to the
company's on the market and this has reduced sales estimates to 30 million pesos.
The director of research and development explains that in order to finish the prototype
and start production of the device, an additional 20 million pesos will be needed.
a) Do you think it is appropriate for the company to continue with the
development and subsequent production of the device? Explain, justifying
your answer.
If it is convenient to continue with the development of the device,
because the company has already invested 15 million and if it invests
an additional 20 million it would be a total of 35 million, it would be a
loss of 5 million that the company would be losing instead of losing
15 million by leaving the production. That is why it is more
convenient to continue with the development so as not to have a
major loss.
b) What maximum amount would you recommend the company pay to finish
developing it? 15 million to have no loss and no profits

2. Construct the production possibilities frontier for a company that produces wooden
bookcases and desks. What will happen to the production possibilities frontier if
livestock activity advances and destroys forested areas? Construct graphs that
explain your reasoning.

FRONTERA DE FRONTERA DE POSIBIL-

POSIBILIDADES DE IDADES DE PRODUC-
PRODUCCION CION
6
7 5
6
5 4
4 3
3
2 2
1
1
0
libreros y ganado inalcansable 0
escritorios libreros y ganado
escritorios
libreros y escritorios Ganado
inalcanzable libreros y escritorios ganado

3.- Suppose that a city studies the possibility of building a bridge across a river. The
bridge will be paid for by collecting taxes on profits from businesses conducted in the
city. The bridge would allow more direct access for commuters and shoppers, and
would alleviate the massive traffic congestion that occurs every morning on the bridge
downstream in another city.
Who would benefit from the construction of the bridge? All the people in the city
since it would alleviate the heavy traffic that exists in the mornings so
workers would get to their jobs earlier and merchants would have more place
to set up their stalls and with tourism it would make them have more profits.
Would it be possible to measure those gains? Yeah
As? Explain We would measure profits through an opportunity cost which was
achieved in this case by sacrificing taxes, thus achieving a service that
provides the greatest possible benefit at a lower cost, thus achieving
efficiency in the allocation.
Who would be harmed? The other city since almost no one would take the
route to go there.
Would it be possible to measure these costs? Yeah
As? Explain Through the production opportunity frontier since through
allocative efficiency we cannot produce a good without having to give up
someone
How would you determine if the construction of the bridge is truly efficient? Explain
that the bridge is efficient when we produce it at the lowest possible cost. In
this case, it was the taxes, which in reality is what is always paid, only that
this time it was used to be able to generate a good by doing it efficiently. It is
also efficient because the more profits the city's businesses have, the more
money we will be generating.

4. Reading a Sears brochure, you find that a 14-foot refrigerator costs $14,000. About
to leave for the store, which is a few steps from his home, he finds out that another
store, which is 10 kilometers away, advertises the same refrigerator for $13,500.
a) Would you go there to buy it? No
Because? Because you also have to take into account transportation, you may
need 2 vans to get there and I would be losing money just as for home delivery
it would cost me more money and I would waste time going to that place.
What factors would you consider when deciding to buy it from that place?
Distance, time and energy loss
How does your decision benefit you?
Spending less time and effort going to the other store
and I would be saving a little more since going there would involve more
expenses.

5.- Suppose that the 10,000 citizens of a small population of voting age are required to
register each year as voters. Suppose also that all citizens in that population are
employed and that each of them values their time at $10 per hour. Furthermore,
assume that high school students in that population who do not vote are willing to
work, earning $5 per hour. The government then has two options:
 You can hire 200 students to work at the registration centers 5 hours a day for
10 days, or
 You can hire 400 students who work 5 hours a day for 10 days.
 If the government hires 200 students, each of the 10,000 citizens will have to
wait an hour in line to register. If the government hires 400 students there will be no
waiting line. Suppose the cost of paying students is financed by an equal tax on each
citizen. The current government is very conservative and has decided to keep taxes
low by hiring only 200 students.
Do you agree with this decision? Yeah
Why or why not? Because the government is thinking about the economy of
the population when making an exchange since I am giving up hiring 200
more young people in order to have a lower tax collection and not charge
more to the people of the population, even if it means having a delay in The
tail.
Is efficient? Yeah
Is it fair? Yeah

6.- A group of ejidatarios is deciding what use to give to 300 hectares that they have
idle. They can grow a certain fruit or vegetable. The studies carried out conclude that
up to 1000 tons (Tn) of fruit or 1500 Tn of vegetables can be produced. According to
the state agricultural research institute, the production options are as follows:

OPTION FRUIT VEGETABL

(Tn) ES (Tn)
TO 1000 0
b 800 500
c 600 900
d 400 1200
AND 200 1400
F 0 1500

a) Construct the graph of the production possibilities frontier. For this community
 b) Build a table that
FRONTERA DE POSIBILIDAD DE
shows PRODUCCIÓN the cost of
producing 1600 vegetables as
F
you go 1400 E from option A to
option B 1200 D and so on until

HORTALIZA (Tn)
1000
you reach C option F.
800
600
B
400 VEGETABLE COST
Combinatio TO 200 b c d AND F
n
0 A
Distribution h F 0h F
200 h400 F 600 h 800 F 1000h 1200F h F
Tn 0 100 500 800 900 FRUTA
600 (Tn)120 400 140 200 150 0
0 0 0 0
COST PER 15 5 1.5 .5 .125 15
(Tn)

c) Construct a table that shows the cost of producing fruit as you go from option F
to option E and so on until you reach option A.
FRUIT COST
Combinatio F AND d c b TO
n
Distribution F h F h F h F h F h F h
Tn 0 150 200 140 400 120 600 900 800 500 100 0
0 0 0 0
COST PER 15 .125 .5 1.5 5 15
(Tn)

Suppose that you are currently producing the mixture of option C,

a) How much does it cost to produce one more ton of fruit? 1800
b) How much does it cost to produce one more ton of vegetables? 1400

Suppose that the current production is 400 tons of fruit and 1200 tons of vegetables
and that each ton of fruit sells for $1,300 and each ton of vegetables sells for $1,000. If
you are the leader of this group of ejidatarios.
 a) What recommendation would you make to your colleagues regarding what
would be appropriate to produce? Is it convenient to produce more vegetables?
more fruit? because? Use the criteria of marginal analysis to develop your
recommendation. It is advisable to produce more vegetables since the
marginal benefit would increase by producing more tons of
vegetables, thus obtaining better profits.
b) Present a brief report on the variation in profits or losses that the ejidatarios
would obtain due to their decision. If we make the decision to produce
more vegetables we would have better profits and there would be no
losses, for example, if we multiply the 1200 tons of vegetables already
produced by the cost of each ton we would obtain a price of $1,200,000
and if we did the same with the fruit we would obtain a profit of 50,000.

7.- The inhabitants of a certain city have expressed their dissatisfaction with the new
rates that have been applied to the supply of a public service. The government
argues that the rate has doubled because the population has increased, due to
immigration in the last two years, by 20% and this has caused the total cost of
providing the service to double. The original inhabitants state that they do not agree to
subsidize the new inhabitants.
If the proposal of the original inhabitants were accepted, not to subsidize the new
inhabitants, how much would the new inhabitants have to pay to have the service
provided? They would have to pay 25% of what the population currently pays
so that the service can be provided.

8. One of the basic problems for any community is deciding how to allocate its meager
budget between the production of two crops in such a way as to choose the optimal
production combination. The table below presents information on the relationship
between the hours of labor used and the production levels obtained. You have 40
hours in this community.
Hours of labor Kilograms of Labor hours Kilograms of
used corn obtained used beans obtained
 0 0 0 0
10 50 10 80
20 120 20 170
30 170 30 240
40 210 40 290

$10 is paid per hour of labor used. Labor hour increments are in blocks of 10.
The price per kilo of corn is $4 and that of beans is $3.50.
 Draw the production possibilities graph

posibilidades de produccion
350
300
250 f(x) = − 1.38095238095238 x + 290
kg de frijol

200
150
100
50
0
0 50 100 150 200 250
kg de maiz

 If this community has a budget of only $100, what is the opportunity cost
(measured in kilograms of beans and in pesos) if the option of producing corn
is chosen? It would cost 80kg of beans = 280 pesos
 This community has $400 and has decided to allocate it equally between the
two crops. Is this a decision that optimizes the use of resources? Because? If it
were not the optimal allocation, what should the optimal allocation be?
Because? It is not the right decision, more money should be put into corn
production because it earns more.
 Calculate the marginal revenue, marginal cost, and marginal utility (all in ($)) of
one additional man-hour hired to produce beans and compare it against the
marginal revenue, marginal cost, and marginal utility (all in ($)) of an additional
man hour contracted to produce corn.
1 hour of bean production
 Marginal income = 1 hour of bean production = 25.39 pesos
Marginal cost = 1 hour of corn production = 21 pesos
Marginal utility = 4.39 pesos
1 hour of corn production
Marginal income = 1 hour of corn production = 21 pesos
Marginal cost = 1 hour of bean production = 25.49 pesos
Marginal utility=-4.39 pesos
 Based on the above, advise this community on what they should do with the
additional $100 that the federal government just sent them.
Increase the hours of bean production since they generate more profits
at a lower cost.

9.- Three months ago you acquired a 200 square meter plot of land for $80,000.
During this quarter, commercial banks have offered an annual interest rate of 8% for
deposits greater than $50,000 and less than $100,000. The price of the land, as you
have been able to find out, has increased in this same time to $82,000. Was it a good
decision to acquire the land? Prepare your calculations and explain your answer in
detail.
Offer = 8% annual interest. If I had bought that land with that offer, its
increase in the three months would have been 1600 pesos, the total value of
the land would have increased by 81,600 pesos. On the other hand, by
purchasing it earlier, his land increased its value by 10% annually, which
would be worth 82,000 pesos. Therefore, it was a good decision to acquire
the land.

10. El Chavo del Ocho has $100 to spend on two products. Every peso that Chavo
saves gives him a profit of 10. The price of product X is $10. The price of Y is $10.
The utility table obtained from the consumption of items X and Y is the following:

Qx Total profit of X qy Total profit of Y

1 500 400
 2 750 600
3 950 750
4 1100 850
5 1200 900
6 1250 925
7 1275 940

 Prepare total profit graphs for item X and item Y.

utilidad total del producto x

1400 1200 1250 1275
1200 1100
950
1000
utilidad total

750
800
600 500
400
200 0
0
0 1 2 3 4 5 6 7 8
numero de productos consumidos(x)

utilidad total del producto Y

1000 925 940
900
900 850
800 750
700
600
utilidad total

600
500
400
400
300
200
100
0
0
0 1 2 3 4 5 6 7 8
Numero de productos consumidos (y)

 Prepare a table of marginal utilities and construct your graphs

 Utilidad marginal del producto A
600

500

400

300

200

100

0
0 1 2 3 4 5 6 7 8

Product Marginal
quantity(x) utility

1 500
2 250
3 200
4 150
5 100
6 50
7 25

Utilidad marginal del producto B

450
400
350
300
250
200
150
100
50
0
0 1 2 3 4 5 6 7 8

Product Marginal
quantity(y) utility
 1 400
2 200
3 150
4 100
5 50
6 25
7 10

11. The Secretary of Public Security has requested the State Governor to expand the
budget assigned to that agency to purchase a greater number of patrol cars, arguing
that crime rates in the city have increased. Prepare arguments for and against this
request. Include in your analysis the first 4 basic principles of economics for decision
making. Do you have any different proposals to reduce crime rates in the city?
Many resources are spent on earth to build these patrols and why so many
patrols? If police are needed, in the capital money is lost when making that sale
and the labor force will still require more expenses and finally the
administration would fail the project if the patrols were spoiled and the town
would lose more than the secretary invested.
12. What is the social cost of building the international convention center? Do you
think this generates any benefit for society? Do you think it is the most convenient for
the city? Explain your answers
Difficulties for residents of nearby homes due to construction, increased
traffic during and after construction due to its magnitude, decreased
government funds.
Yes, I think it is the most convenient for the city since this center will bring
many people and the stalls that are installed there will generate money and of
course let's not forget tourism and the great economy that will grow over the
years will benefit the people and workers.

13.- Extending coverage to more neighborhoods allows the urban transportation

system to attract a greater number of passengers. It is currently estimated to transport
300,000 passengers a week with an average fare of $6.00. A 15% growth in the
number of passengers is estimated. Mention at least 6 factors to consider when
making the decision to extend coverage. Market factor, the product,
transportation, the condition of the vehicle, the routes, the price of the ticket,
these are the factors that I consider should be taken into account since if I were
the client I would like to have a good trip with a affordable price and that it was
also comfortable that the routes are not so short so as not to waste time and
arrive at my destination sooner.

14. You own a pizzeria. He has two employees; Julia and Ana. In an 8-hour day, Julia
can make 240 pizzas or 100 special ice creams, and Ana can make 80 pizzas or 80
special ice creams. Create a task assignment schedule. Who will be assigned the task
of preparing ice cream? Who will make the pizzas? Prepare your calculations and
explain your answer.

pizzas helado

2500
2000 1000
800
1500
600
1000
400
500 200
0 0
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

horas pizza julia horas pizza julia

pizza de ana pizza de ana

Looking at the graphs, the pizzas would give us more profits, so Julia will
make the pizzas and since ice creams don't give us much profit, she will
make them.

15. Juan Pérez is a student at the Universidad del Sureste. He is preparing for his final
exams, his work and family commitments leave him just five hours to study two of his
subjects: Statistics and Economics . Juan's goal is to obtain the highest average
grade and his problem is to decide how much time he should invest in each of the
subjects.
According to your best estimates, your grade in each course depends on the number
of hours of study devoted to each subject. The following table shows the rating
estimates prepared by Juan:

Finance Ec. Admva.

Hours Qualification
0 25
1 45
2 65
3 75
4 83
5 90
Hours Qualification
0 50
1 62
2 72
3 81
4 88
5 93

With the information provided and using the marginal analysis criterion (calculate
the marginal grade for each hour of study) answer the following questions
a) According to your calculations, why is the decision to study 4 hours of finance and
one of administrative economics not correct? Give reasons for your answer
Because, by dedicating 4 hours to finance, your grade is 83, and with 1 hour
of study for economics, you would get a 62, this gives an average of 72.5
b) Explain the way in which Juan could use the marginal approach or criterion to
determine the optimal distribution of his scarce resources (the five hours) between
the two subjects, in such a way that he achieves the goal that has been set.
You could calculate the cost of each hour of study for each subject and
see which has the lowest cost.
c) How much time should Juan spend studying each subject so that his decision is
optimal?
The best distribution would be to give 3 hours of study to Finance, to get a
75, and give 2 hours of study to Economics to get a 72, so your average
would be 73.5.
 In addition to Administrative Economics and Finance, Juan also takes a Marketing
course. According to their estimates, each hour spent studying marketing will
produce an eight-point increase in their final marketing grade. Juan has decided to
dedicate one hour of the five he has available to study marketing; If John is trying to
maximize his average grade in all three courses
d) Is this a good decision? Because? Explain
If your average in Marketing before studying that hour is at least 76, it
would be a good decision, since, by studying this hour, your average in
Marketing would rise to 84, the latter added to the 65 in Finance and 72 in
Economics. I see that it's okay so if you were to miss one hour your
grades would drop and cause you to fail all three. So it's a bad idea.

16.-Cristal and Ana live on the beaches of Telchac Puerto. They have a small
business where they make two types of crafts: bracelets and flower pots, items that
they sell to people on the beach. Cristal can make 15 bracelets or 3 flower pots in one
hour. Ana is a little slower and can only make 12 bracelets or 2 flower pots per hour.

a. How much does it cost Cristal to produce a pot? 3 pots per hour
How much to Ana? 2 pots per hour
Who has the advantage in pot production? Explain your answer. Crystal because
it can produce a greater number of pots than Ana in the same hour .
b. How much does it cost Cristal to produce a bracelet? 15 bracelets per hour
c. How much to Ana ? 12 bracelets per hour
d. Who has the advantage in bracelet production? Explain your answer. Crystal at
the same time as Ana she continues to produce a greater quantity.
e. Suppose Cristal and Ana each work 20 hours a week in the business. Prepare the
production possibilities graph for each of them.
 posibilidades de posibilidades de
produccion de Ana produccion de Ana
yCristal en hacer yCristal en hacer
pulseras maceta
60 60
50 50
40 40
30 30
20 20
10 10
0 0
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

juan pedro juan pedro

f. If Cristal dedicated half of her time (10 out of every 20 hours) to making bracelets
and the other half to making flower pots, how many of each could she produce in a
week? If Ana did the same, how many of each would she produce? How many
bracelets and pots would both make in total? Cristal would produce 1050
bracelets and 210 pots, Ana would produce 840 bracelets and 140 pots.
g. Suppose that Ana dedicates 20 hours of her time to the bracelets and Cristal
dedicates 17 hours to the pots and three hours to the bracelets. How many of each
will they make? Ana would produce 240 bracelets and Cristal 45 bracelets
and 51 flower pots.
h. Suppose Cristal and Ana can sell all of their bracelets for $1 a piece and all of their
flower pots for $5.50 a piece. If each of them worked 20 hours a week, how would
you schedule the production of both to obtain the maximum income?
hours Flowerpot Bracelets M profit P gain
Glass 20 60 300 330 300
Ana 20 40 240 220 240
Cristal must produce pots to have more profits and Ana bracelets

17.- The “Wood Products” factory produces doors and windows. You need to
define which of your workers will produce the doors and which the windows. In one
hour of work Juan can make 12 windows or 3 doors. Pedro can produce 9 windows
or 6 doors in one hour.

a) Prepare a table that shows all the production possibilities for Pedro and Juan in
an 8-hour shift b) Graph the production possibilities of both on a single graph

posibilidades de pro- posibilidades de producción

ducción para Pedro y para Pedro y Juan en un
Juan en un turno de 8 turno de 8 horas de puertas
horas de ventanas 60
60 50
50
40
40
30
30
20 20

10 10
0 0
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8

juan pedro juan pedro

b) How much does it cost Pedro to produce a window? 5 minutes

How much does it cost you to produce a door? 20 minutes
c) Who should produce the doors? Pedro
Who should produce the windows? Juan

18.- A company produces two types of electronic calculators, a standard model,

whose utility is $5, and a deluxe model, whose utility is $8. The company estimates
that its dealer network can at most handle 1,000 calculators a week. Due to the
rapid growth of the calculator industry, there is a decrease in both parts and skilled
labor needed to assemble calculators. The company can obtain a regular weekly
supply of only 5,000 electronic circuits (chips) needed for the calculators; Each
regular calculator needs 3 of these chips and each luxury calculator requires 6.
Furthermore, the company only has 2,500 man-hours of skilled labor per week;
Each regular calculator requires 3 man-hours and each luxury calculator requires
2. How many calculators of each type do you recommend producing per week in
order to obtain the greatest total profit?

3c1+2c2=2500

If c1=0 if c2=0 c2=1250 c1=833.33

C1=2500-2c2/3 c2 c2=1500-3c1/2

=833.33-2/3c2 =1250-1.5c1

Img=8

Cmg=-3.33

Umg=4.07 c1=1000-c2

C2=1000-c1

posibilidades de produccion
8

. chip produccion

200=c1

400=c2

Chip consumption

3(200) +6(400) =3000<5000

Chip usage

3000/5000x100= 60%

Not used

100%-60%=40%

Distribution = 60%

Total profit =4200

options C1 C2 Ut
TO 0 833.33 666.69
b 333.33 666.66 999.99
c 500 500 650
d 833.33 0 4166.6

3c1 + 6c2= 500

C1 + c2= 100

C2=666.66

C1=333.33

3c1 + 2c2 = 2500

3c1 + 3c2= 3000

C2=500

Profit = 66%

Hours=233.33<2500

Chip consumption=5000

No utility used=6.66%
19. Bicimex, a manufacturer of touring (BP) and mountain bikes (BM) has available
80 Kg of steel and 120 Kg of aluminum. The estimated selling prices for the
bicycles are P BP = $20,000 and P BM = $15,000 . Each touring bike requires 1 Kg.
of steel and 3 kg. aluminum, and each mountain bike requires 2 Kg of both
materials. The estimated cost of producing a touring bike is $17,000 and the
estimated cost of producing a mountain bike is $10,000.

a) If the company decided to produce exclusively touring bicycles: what is the

maximum number of these bicycles it could produce ? 40 units

b) How many mountain bikes would it be stopping producing? If only

mountain bikes were produced there would be 40 units

c) What would be the profit (income minus costs) of the company with this
production program? You would be losing $680,000

d) What would be the opportunity cost of this production program? You

would have a profit of $800,000

e) How much steel and aluminum is wasted with this production program? 40
of aluminum would be wasted

f) What percentage does this waste represent with respect to the original
stock? 50%

g) If the company decided to produce exclusively mountain bikes: what is the

maximum number of these bikes it could produce? 40 units

h) How many touring bicycles would it be stopping producing? 40 units

i) What would be the profit (income minus costs) of the company with this
production program? $400,000

j) What would be the opportunity cost of this production program?

$600,000

k) How much steel and aluminum is wasted with this production program? 40
of aluminum would be wasted
 l) What percentage does this waste represent with respect to the original
stock? 22.22%

m) Prepare a table and graph of production possibilities (alternative production

programs possible with the current stock of materials) for touring and
mountain bikes with the current stock of steel.

acero
45
40
35
30
25
20
15
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

paseo montaña
walk mountain
80 0
78 1
76 2
74 3
72 4
70 5
68 6
66 7
64 8
62 9
60 10
58 11
56 12
54 13
52 14
50 15
48 16
46 17
44 18
42 19
40 20
38 21
36 22
34 23
32 24
30 25
28 26
26 27
24 28
22 29
20 30
18 31
16 32
14 33
12 34
10 35
8 36
6 37
4 38
2 39
0 40
 n) Prepare a table and a graph of production possibilities (alternative
production programs possible with the current stock of materials) for touring
and mountain bikes with the current stock of aluminum.

aluminio
45
40
35
30
25
20
15
10
5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41

paseo montaña

walk mountain
40 0
39 1
38 2
37 3
36 4
35 5
34 6
33 7
32 8
31 9
30 10
29 11
28 12
27 13
26 14
25 15
24 16
23 17
22 18
21 19
20 20
19 21
 18 22
17 23
16 24
15 25
14 26
13 27
12 28
11 29
10 30
9 31
8 32
7 33
6 34
5 35
4 36
3 37
2 38
1 39
0 40

o) Due to market demand, the company has to produce both bicycles. Help the
company develop a production schedule for both bicycles in such a way as
to make the greatest possible profit. How much steel and aluminum is
wasted with your production plan?

X+2y=80

3x+2y=120 x=20 y Y=30

Make 20 touring bikes and 30 mountain bikes

This way there would be no leftover material.

20.- The Motorola company is scheduling the production of two of its newest cell
phones, the MZ1 model and the MZ2 model. Each of the models goes through 3
machining processes, process A, process B and process C. The MZ1 model
requires for its manufacture: 2 hours of process A, 1 hour of process B and 1 hour
of process C. The MZ2 model requires: 1 hour in process A, 2 hours in process B
and 1 hour in process C. The company has a maximum number of hours in each
of the processes: process A has 180 hours per month, process B has 160 hours
per month and process C has 100 hours per month. With information from the
marketing and production departments, it is known that each unit sold of the MZ1
model leaves a profit of 400 dollars while each unit of the MZ2 model leaves a
profit of 600 dollars.

a) Build the equations that establish the time needs of each model in each of the
departments or processes (the sum of the time used by X units produced from the
model plus the time used by Y units produced from the MZ2 model with the
availability of resources .

b) Build the equation that establishes the interdependence relationship between

the MZ1 model and the MZ2 model (opportunity cost concept)

c) Prepare graphs that show the company's production possibilities in each of the
manufacturing processes. Identify the plant's production possibilities area by taking
into account the three processes (with the resource limitation of each process)

d) The technological innovations that the two cell phone models have suggest that
the market will buy all the company's possible production. If the company is
correct in its forecasts and sells all the cell phones it produces, how many cell
phones of each model should it produce in order to obtain the highest profits per
month?