The Graphical Method - Optimal Solution | Previous | Next |
Optimal Solution:
Optimal point on graph: (0, 7). Resulting optimal solution: , . Optimal value of : . |
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Remember that and represent Leo's number of shares of Ventures 1 and 2 respectively. Also, is measured in units of thousands of dollars. Therefore, our conclusion is that Leo should take 7 shares of Venture 2, but none of Venture 1. This strategy will enable Leo to add $70,000 dollars to his savings before returning to school to earn an MBA degree. | |||
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