Answer to Question #234897 in Economics of Enterprise for Vision

Question

Given the following information below,
compute the maximum revenue combinations of products using the maximum revenue criterion (Py_2=$2, 〖Py〗_1=$1) [5]
Hake Pilchards
43 0
42 7
40 13
36 18
30 22
22

Answer 1

complete question

solution

Revenue on Hake(i.e Y1) = PY1 * Hake  

Revenue on Pilchards(i.e Y2) = PY2 * Pilchards

Total Revenue = Revenue on Hake(i.e Y1) + Revenue on Pilchards(i.e Y2)

Revenue is maximum for Hake = 30 and Pilchards = 22

Thus, for Hake = 30 and Pilchards = 22, Revenue is maximized.