Questions tagged [linear-programming]
Linear programming (also called linear optimization) is a method to achieve the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships. Linear programming is a special case of mathematical programming (mathematical optimization).
7
questions
0
votes
1answer
43 views
A profit maximization problem (whole problem has been solved, I just have question about interpretation)
I would like to discuss with you about the following production function.
$$y=f(t_m, t_l)=\rho (t_m)^m(n+t_l)$$
where $0<m<1 $ and $n>0$ are fixed parameters.
$t_m$ is manager time.
$t_l$...
2
votes
1answer
74 views
Linear programming, shadow price range
I'm not sure how to determine the range for which a shadow price is valid.
You might be able to skip straight to the question here.
I've been introduced to it using the following approach in 2D.
...
3
votes
1answer
139 views
Has this differential calculus inequality approach to optimizing the production possibility curve exist?
I just started micro-economics at my community college and my teacher mentioned the derivative of the PPF for two output resources. I thought about it a while and came up with this approach. Some of ...
0
votes
1answer
62 views
What is the interpretation of the output matrix of pivoting?
I have the following matrix:
$$A= \begin{bmatrix}
1 & 2 & 3 \\
2 & 3 & 4
\end{bmatrix}$$
After pivoting, I got this matrix:
$$B= \begin{bmatrix}
1 & 2 & 3 \\
...
5
votes
1answer
129 views
How to write the dual problem of this maximization problem?
On this note for Shapley-Shubik model, there's a maximization problem:
$$\max_{x_{ij} \in \mathbb{R}^{M \times N}}\sum_{j \in N}\sum_{i \in M}v_{ij}x_{ij}$$
$$\text{s.t.} \ \sum_{j \in N}x_{ij} ...
3
votes
0answers
60 views
Optimisation of bonds
I'm doing an optimisation problem but don't understand what the terms mean.
Suppose someone wants to invest $110,000.
They have 4 choices as to what they invest their money into:
municipal bond ...
13
votes
1answer
1k views
First Order Condition for Profit Maximization in Gambling Industry
I am working on a model of optimal payout percentages in the gambling industry.
Because the nominal price of a \$1 ticket is always \$1, we use an effective price strategy where Q = \$1 in won ...
