Your salami manufacturing plant can order up to 1,000 pounds of pork and 2,400 pounds of beef per day for use in manufacturing its two specialties: Count Dracula Salami and Frankenstein Sausage. Production of the Count Dracula variety requires 1 pound of pork and 3 pounds of beef for each salami, while the Frankenstein variety requires 2 pounds of pork and 2 pounds of beef for every sausage. In view of your heavy investment in advertising Count Dracula Salami, you have decided that at least one third of the total production should be Count Dracula. On the other hand, because of the health-conscious consumer climate, your Frankenstein Sausage (sold as having less beef) is earning your company a profit of $7 per sausage, while sales of the Count Dracula variety are down and it is earning your company only $1 per salami. Given these restrictions, how many of each kind of sausage should you produce to maximize profits, and what is the maximum possible profit (in dollars)

The manager of a branch office of banco mexicali observed that during peak hours an average of 20 customers arrives per hour and that there is an average of 6 customers in the branch office at any time. how long does the average customer spend waiting in line and being serviced?

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?