Jean-Pierre Leveque has recently been named the Minister of International Trade for the new…

Jean-Pierre Leveque has recently been named the Minister of International Trade for the new nation of New France. In connection with this position, he has decided that the welfare of the country (and his performance) could best be served by maximizing the net dollar value of the country’s exports for the coming year. (The net dollar value of exports is defined as exports less the cost of all materials imported by the country.)

 The area that now constitutes New France has traditionally made three products for export: steel, heavy machinery, and trucks. For the coming year, Jean-Pierre feels that they could sell all that they could produce of these three items at existing world market prices of $900/unit for steel, $2500/unit for machinery, and $3000/unit for trucks

 In order to produce one unit of steel with the country’s existing technology, it takes 0.05 units of machinery, 0.08 units of trucks, two units of ore purchased on the world market for $100/unit, and other imported materials costing $100. In addition, it takes .5 man-years of labor to produce each unit of steel. The steel mills of New France have a maximum usable capacity of 300,000 units/year.

To produce one unit of machinery requires .75 units of steel, 0.12 units of trucks, and 5 man-years of labor. In addition, $150 of materials must be imported for each unit of machinery produced. The practical capacity of the country’s machinery plants is 50,000 units/year.

 In order to produce one unit of trucks, it takes one unit of steel, 0.10 units of machinery, three man-years of labor, and $500 worth of imported materials. Existing truck capacity is 550,000 units/year. The total manpower available for production of steel, machinery, and trucks is 1,200,000 men/year.

To help Jean-Pierre in his planning, he had one of his staff formulate the model shown in Fig. and solved in Fig. Referring to these two exhibits, he has asked you to help him with the following questions:

a) What is the optimal production and export mix for New France, based on Fig.? What would be the net dollar value of exports under this plan?

 b) What do the first three constraint equations (STEEL, MACHIN, and TRUCK) represent? Why are they equality constraints?

c) The optimal solution suggests that New France produce 50,000 units of machinery. How are those units to be utilized during the year?

d) What would happen to the value of net exports if the world market price of steel increased to $1225/unit and the country chose to export one unit of steel?

Jean-Pierre Leveque has recently been named the Minister of International Trade for the new nation...-1


e) If New France wants to identify other products it can profitably produce and export, what characteristics should those products have?

f) There is a chance that Jean-Pierre may have $500, 000 to spend on expanding capacity. If this investment will buy 500 units of truck capacity, 1000 units of machine capacity, or 300 units of steel capacity, what would be the best investment?

 g) If the world market price of the imported materials needed to produce one unit of trucks were to increase by $400, what would be the optimal export mix for New France, and what would be the dollar value of their net exports?


  X1 = Steel production for export (EXSTEE),

  X2 = Machinery production for export (EXMACH),

  X3 = Truck production for export (EXTRUC),

  X4 = Total steel production (TOSTEE),

  X5 = Total machinery production (TOMACH),

  X6 = Total truck production (TOTRUC)


 Steel output (STEEL)

Machinery output (MACHIN)

Truck output (TRUCK)

 Steel capacity (CAPSTE)

 Machinery capacity (CAPMAC)

Truck capacity (CAPTRU)

 Manpower available (AVAMAN)

Jean-Pierre Leveque has recently been named the Minister of International Trade for the new nation...-2

h) The Minister of Defense has recently come to Jean-Pierre and said that he would like to stockpile (inventory) an additional 10,000 units of steel during the coming year. How will this change the constraint equation STEEL, and what impact will it have on net dollar exports?

 i) A government R&D group has recently come to Jean-Pierre with a new product, Product X, that can be produced for export with 1.5 man-years of labor and 0.3 units of machinery for each unit produced. What must Product X sell for on the world market to make it attractive for production?

 j) How does this particular formulation deal with existing inventories at the start of the year and any desired inventories at the end of the year?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Online Academic Experts
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Thank you , Excellent work
Customer 453201, June 2nd, 2022
Business and administrative studies
awesome work
Customer 453201, June 15th, 2022
Human Resources Management (HRM)
My son and I have been sick for two weeks, of course at the end of my semester. I am so grateful that myhomeworkgeeks were able to help! Both papers got A's and I couldn't be more thrilled! Thank you so much and don't forget to tip your writer!
Customer 453077, February 22nd, 2022
Criminal Justice
The paper was not accused of plagiarism and was written very well. I will let you know the grade once it is graded. Thank you
Customer 452671, April 26th, 2021
Very fast response and did a excellent job.
Customer 453201, May 31st, 2022
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
English 101
thank you for the excellent work
Customer 452883, October 29th, 2021
Social Work and Human Services
Great work I would love to continue working with this writer thought out the 11 week course.
Customer 452667, May 30th, 2021
Thank you!
Customer 453145, April 19th, 2022
Classic English Literature
It was my first time using such a service. Essay was good and nicely formatted.
Customer 452441, February 16th, 2022
English 101
Thank you for this excellent analysis of the Alchemist.
Customer 453213, June 15th, 2022
Impressive writing
Customer 452547, February 6th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live ChatWhatsApp