A firm that produces milk and cheese has estimated the quantities of the two products it can produce with two levels of total expenditures as shown in the table below.
$$\begin{array} { | l | l | l | l | }
\hline { \text { Total Cost } = 80 } && { \text { Total cost } = 100 } \
\hline \text { Milk } & \text { Cheese } & \text { Milk } & \text { Cheese } \
\hline 80 & 0 & 100 & 0 \
\hline 70 & 35 & 85 & 40 \
\hline 50 & 60 & 65 & 75 \
\hline 25 & 80 & 35 & 100 \
\hline 0 & 90 & 0 & 120 \
\hline
\end{array}$$ If it sells each of these products for $1 per unit, what is the optimal combination of milk and cheese the firm should produce and what is the maximum profit it can achieve?

Question

A firm that produces milk and cheese has estimated the quantities of the two products it can produce with two levels of total expenditures as shown in the table below.
 $$\begin{array} { | l | l | l | l | } 
\hline { \text { Total Cost } = 80 } && { \text { Total cost } = 100 } \
\hline \text { Milk } & \text { Cheese } & \text { Milk } & \text { Cheese } \
\hline 80 & 0 & 100 & 0 \
\hline 70 & 35 & 85 & 40 \
\hline 50 & 60 & 65 & 75 \
\hline 25 & 80 & 35 & 100 \
\hline 0 & 90 & 0 & 120 \
\hline
\end{array}$$ If it sells each of these products for $1 per unit, what is the optimal combination of milk and cheese the firm should produce and what is the maximum profit it can achieve?

Quizplus · Accepted Answer

The Answer of A firm that produces milk and cheese has estimated the quantities of the two products it can produce with two levels of total expenditures as shown in the table below.
 $$\begin{array} { | l | l | l | l | } 
\hline { \text { Total Cost } = 80 } && { \text { Total cost } = 100 } \
\hline \text { Milk } & \text { Cheese } & \text { Milk } & \text { Cheese } \
\hline 80 & 0 & 100 & 0 \
\hline 70 & 35 & 85 & 40 \
\hline 50 & 60 & 65 & 75 \
\hline 25 & 80 & 35 & 100 \
\hline 0 & 90 & 0 & 120 \
\hline
\end{array}$$ If it sells each of these products for $1 per unit, what is the optimal combination of milk and cheese the firm should produce and what is the maximum profit it can achieve?

A Firm That Produces Milk and Cheese Has Estimated the Quantities