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 E) None of the above

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 E) None of the above

-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

The lowest value that the profit per unit of X₁ can be to remain in the basis is the shadow price or reduced cost, which is typically the current profit minus the allowable decrease. Since the current profit is $20, the lowest it can be while remaining profitable is $16.

Table M7-1 -According to Table M7-1,it Is Currently Profitable to Produce Some