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seen Oct 29 at 11:21

I help non-technical startup founders validate their business ideas.

Have a look at my free e-book "How to find a technical co-founder for your startup" at http://altruix.cc .


Jan
1
comment Maximum feasible output of a company
Thanks. Please write your statement as an answer so that I can accept it.
Jan
1
comment Maximum feasible output of a company
@copper.hat Yes. Sorry for a dumb question, but how did you derive this formula ($5*min(A, 4B)$) ? I want to understand it and extend to a case with more than 2 inputs.
Jan
1
comment Maximum feasible output of a company
@copper.hat See my update 1. The problem is that the company doesn't know in advance, how many resources it will buy. In step 1 (last paragraph of Update 1), the company decides on the quantity of final product it intends to produce. Then, it goes to the market (together with other buyers and sellers) and buys a certain amount of each resource. The company doesn't know in step 1 how much of every input it will buy in step 2. Finally, in step 3 it has so many of each input and now needs to produce a quantity of final output, which conforms to the constraints (0.2 of input A and 0.8 of input B).