Using optimization theory

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1. Using optimization theory in Chapter 3, please comment on the following quotation:

“If Congress cuts out the NASA space station, we will have wasted all the resources that we have already spent on it. Therefore, we must continue funding it.”

2. Newspaper and soft drink are priced almost the same around $1 per unit by vending machines. Given the same unit price (value), how come a newspaper vending machine can be opened easily (i.e. take as many as you want) but a Coke vending machine is tough to open (i.e. drop one can at a time)? Please discuss it by marginal analysis for optimization.

Reference no: EM13998689

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