If the dual price for b₁ is 2.7,the range of feasibility is 20 ≤ b₁ ≤ 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)All of these are correct.

Question

Quizplus · Accepted Answer

A) The dual price being positive (2.7) means that the first constraint is binding - there is no slack.
B) The dual price (2.7) represents the increase in profit per unit increase in resource 1. Therefore, if we were willing to pay up to $2.70 per unit, we could buy up to 20 more units of resource 1 and still remain in the feasible range.
C) The dual price of 2.7 represents how much profit would increase per unit increase in resource 1. Therefore, with 5 fewer units of resource 1 (25 instead of 30), profit would decrease by 5 x 2.7 = $13.50.
All three statements are true, so the best choice is D.

If the Dual Price for B1 Is 2

If the Dual Price for B₁ Is 2