Table M7-1
-According to Table M7-1, it is currently profitable to produce some units of X₁ and the current profit per unit of X₁ is $20.What is the lowest value that this could be to allow this variable to remain in the basis?

Question

Table M7-1 Table M7-1 -According to Table M7-1, it is currently profitable to produce some units of X<sub>1</sub> and the current profit per unit of X<sub>1</sub> is $20.What is the lowest value that this could be to allow this variable to remain in the basis? A) 8 B) 16 C) 20 D) 30

Table M7-1 -According to Table M7-1, it is currently profitable to produce some units of X<sub>1</sub> and the current profit per unit of X<sub>1</sub> is $20.What is the lowest value that this could be to allow this variable to remain in the basis? A) 8 B) 16 C) 20 D) 30

-According to Table M7-1, it is currently profitable to produce some units of X₁ and the current profit per unit of X₁ is $20.What is the lowest value that this could be to allow this variable to remain in the basis?

Quizplus · Accepted Answer

In order for X₁ to remain in the basis, its profit per unit must be non-negative. Therefore, the lowest value it could be is $0. If the profit per unit were negative, it would be more profitable to produce other variables instead. Since the current profit per unit is $20, it is definitely profitable to produce X₁ and it can remain in the basis. Thus, any value greater than or equal to $0 would allow X₁ to remain in the basis. The only option that meets this requirement is B: 16.

Table M7-1 -According to Table M7-1, It Is Currently Profitable to Produce