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MSA Computer Corporation manufactures two models of minicomputers,the Alpha 4 and the Beta 5. The firm employs 5 technicians, working160 hours each per month, on its assembly line. Management insiststhat full employment (that is, all 160 hours of time) bemaintained for each worker during next month's operations. Itrequires 20 labor-hours to assemble each Alpha 4 computer and 25labor-hours to assemble each Beta 5 model. MSA wants to see atleast 10 Alpha 4s and at least 15 Beta 5s produced during theproduction period. Alpha 4s generate a $700 profit per unit, andBetas yield $1,800 each.
(a)Determine the most profitable number of Alpha-4 model ofminicomputer to produce during the coming month.Round your answer to 2 decimal places; forexample, 12.34 .
(b)Determine the most profitable number of Beta-5 model ofminicomputer to produce during the coming month.Round your answer to 2 decimal places; forexample, 12.34 .
(c)What is the optimal profit?Round your answer to the nearest whole number; forexample, 12,345 .
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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