The white horse apple products company purchases apples from local growers and makes applesauce, apple jelly and apple juice. it costs 60¢to produce a jar of applesauce, 70¢to produce a jar of apple jellyand 85¢to produce a bottle of apple juice. the company has a policy that at least 20% but no more than60% of its output must be applesauce. the company wants to meet but not exceed the demand for each product. the marketing managerestimates that the demand for applesauce is 5,000 jars plus an additional 3 jars for every $1 spent onadvertising. the demand for apple jelly is estimated to be 4,500 jars plus an additional 4 jars for every$1 spent on advertising apple jelly. the demand for apple juice is estimated to be 4,000 bottles plus anadditional 5 bottles for every $1 spent on promoting apple juice. the company has a budget of $26,000to spend on producing and advertising applesauce, apple jelly and apple juice. applesauce sells for $1.45per jar, apple jelly sells for $1.55 per jar and apple juice sells for $1.75 per bottle. the company wants tomaximize its profit. a.[6 points]formulate alinear programming modelfor this problem. your model must bealgebraic. b.[6 points]solve the problem using gams.

Quantitative problem: you need $20,000 to purchase a used car. your wealthy uncle is willing to lend you the money as an amortized loan. he would like you to make annual payments for 4 years, with the first payment to be made one year from today. he requires a 8% annual return. what will be your annual loan payments? round your answer to the nearest cent. do not round intermediate calculations. $ how much of your first payment will be applied to interest and to principal repayment? round your answer to the nearest cent. do not round intermediate calculations. interest: $ principal repayment

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

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