If the dual price for b₁ is 2.7, the range of feasibility is 20 $\le$ b₁ $\le$ 50, and the original value of b₁ was 30, which of the following is true? A)There currently is no slack in the first constraint. B)We would be willing to pay up to $2.70 per unit for up to 20 more units of resource 1. C)If only 25 units of resource 1 were available, profit would drop by $13.50. D)Each of the above is true.

Question

Quizplus · Accepted Answer

- A) The range of feasibility being 20 implies that there is slack of 20 units in the first constraint. Therefore, this statement is false. - B) Dual price of 2.7 implies that we would be willing to pay up to $2.70 per unit to increase the availability of resource 1 by 1 unit. Therefore, this statement is true. - C) The reduced cost of b₁ is the amount by which the profit would decrease for each unit decrease in the availability of resource 1. Therefore, reduced cost = dual price = 2.7. So, if only 25 units of resource 1 were available, the profit would decrease by (30-25)*2.7 = $13.50. Therefore, this statement is true. Hence, the correct choice is (D).

If the Dual Price for B1 Is 2 ≤\le≤ B1 ≤\le≤ 50, and the Original Value of B1 Was 30, Which

If the Dual Price for B₁ Is 2 $\le$ B₁ $\le$ 50, and the Original Value of B₁ Was 30, Which