A steel plant is capable of producing 'x' tonnes per day of low-grade steel and 'y' tonnes per day of high-grade steel, where . If the fixed price of low-grade steel is half that of high-grade steel, then the quantity of low-grade steel that should be produced per day for maximum receipts is
A steel plant is capable of producing 'x' tonnes per day of low-grade steel and 'y' tonnes per day of high-grade steel, where . If the fixed price of low-grade steel is half that of high-grade steel, then the quantity of low-grade steel that should be produced per day for maximum receipts is
Solution
✅ Correct Option: 1
Taking the high-grade price as unit, receipts are .
Then gives , so or .
Only keeps , and it gives the maximum.
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