Example: Iron Works, Inc.

• Mathematical Model

  • The total monthly profit =
    (profit per unit of product 1)
    x (monthly production of product 1)
    + (profit per unit of product 2)
    x (monthly production of product 2)
    = p1x1 + p2x2
    We want to maximize total monthly profit:
    Max p1x1 + p2x2

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