... cannot be used in the following three situations; First, if the strong economies of scale exist; second as the firm expands output, the prices of variable factors of production increase; and as output increases, product prices declines. Why we cannot use the linear programming during those situations? That is because in the linear programming, the none-linear and discontinued is not allowed. As the assumption of linearity is based on considering the revenue function, production function and the profit function of the business must be linear. When output increase, revenues, costs and profits must increase linearly. And also for revenues to increase linearly with output, product prices must constant. In general that in many instances the linearity assumptions are valid, and in other cases, when the assumption does not hold precisely, linear approximations will not seriously misrepresent the analysis. Here I use a simple example and solve it with both graphic solution and ...

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