- #1
jheld
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Homework Statement
Mocha beans are priced at X dollars per pound, and Kona beans at y dollars per pound.
80 - 100x + 40y pounds of Mocha beans sold each week
20 + 60x -35y Kona beans sold each week. Cost of the beans is $2 per lbs of Mocha and $4 of Kona beans to the owners.
How should the owners price the coffee beans in order to maximize their profits?
Homework Equations
Looking for critical points (maximums, extremum).
Take the first derivative of each partial, see what the variable should be for it to be equal to 0.
Then go to the second partials and put them in the Hessian matrix, and solve with the derivative to see what the max should be.
The Attempt at a Solution
Solving for Mocha first..
f_x = -100
f_y = 40
But after that, I get stuck; I am not sure how to relate the $2 cost we were given.