Develop a hypothetical example for an optimization model.

1. Develop a hypothetical example for an optimization model. Then once you have explained what your model would cover, explain what the objective function, optimal solution, constraint, constraint function, feasible solution, and binding constraint might be for your model.

2. In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?