# GMCO produces three types of cars: compacts, mid-size, and large. The variable cost per car (in…

GMCO produces three types of cars: compacts, mid-size, and large. The variable cost per car (in thousands of dollars) and production capacity for each type of car are given in Table 23. The annual demand for each type of car depends on the prices of the three types of cars, given in Table 24. Here PC price charged for compact car (in thousands of dollars), and so on. Suppose that each compact gets 30 mpg, each medium car gets 25 mpg, and each large car gets 18 mpg. GMCO wants to keep the planet pollution-free, so in addition to maximizing profit, it wants to maximize the average miles per
GMCO produces three types of cars: compacts, mid-size, and large. The variable cost per car (in thousands of dollars) and production capacity for each type of car are given in Table 23. The annual demand for each type of car depends on the prices of the three types of cars, given in Table 24. Here PC price charged for compact car (in thousands of dollars), and so on. Suppose that each compact gets 30 mpg, each medium car gets 25 mpg, and each large car gets 18 mpg. GMCO wants to keep the planet pollution-free, so in addition to maximizing profit, it wants to maximize the average miles per gallon attained by the cars it sells. Use LINGO to construct a trade-off curve between these objectives.

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