Return to Eli Orchid Exercise 6-2. Answer each of the following as well as possible from the results in Table 6.7.

(a) What is the marginal cost of production

(per ton of output)?

(b) How much would it cost to produce 70 tons of the new pharmaceutical product?

To produce 100 tons?

(c) How much should Orchid be willing to pay to obtain 20 more tons of ingredient 1? How about ingredient 2?

(d) How cheap would the third process have to become before it might be used in an optimal solution?

(e) How much would the cost of the 50 tons of product increase if process 2 actually cost $32,000 per batch? If it cost

$39,000?

(f) How much would the cost of the 50 tons of product decrease if process 1 cost

$13,000 per batch? If it cost $10,000 per batch?

(g) Suppose that the engineering department is thinking about a new process that produces 6 tons of product using 3 tons of each of the two original ingredients. At what cost would this new process be economic to use?

(h) Suppose that the three processes actually use 0.1, 0.3, and 0.2 ton per batch of a third ingredient but we do not know exactly how much of it is available.

Determine the minimum amount needed if the optimal primal solution in Table 6.7 is not to change.