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Consider again the linear program (P) that appeared in Problem 2A of last assignment: max 40+702 s.t. 1 2 100 10xi + 50x2 K 4000
Consider again the linear program (P) that appeared in Problem 2A of last assignment: max 40+702 s.t. 1 2 100 10xi + 50x2 K 4000 This linear program (P) describes a proft maximization problem of some production process. Constraint (1) is a capacity constraint, where 100 is the current capacity. Constraint (2) is a budget constraint, where $4000 is the maximum amount that can be spent. Let (D) be the dual of (P). The optimal solutions to (P) and (D) are (ti,2) (25,75) and (71,72) (32.5,0.75). respectively. Before you start your production operation, (a) Suppose you can borrow $100, use it to increase your budget to $4100, and pay it back at $180. Should you do it or not? (b) Suppose you can take $100 from your current budget and use it to increase your current capacity from 100 to 110. Should you do it or not? Please answer the above questions without solving the LPs. Consider again the linear program (P) that appeared in Problem 2A of last assignment: max 40+702 s.t. 1 2 100 10xi + 50x2 K 4000 This linear program (P) describes a proft maximization problem of some production process. Constraint (1) is a capacity constraint, where 100 is the current capacity. Constraint (2) is a budget constraint, where $4000 is the maximum amount that can be spent. Let (D) be the dual of (P). The optimal solutions to (P) and (D) are (ti,2) (25,75) and (71,72) (32.5,0.75). respectively. Before you start your production operation, (a) Suppose you can borrow $100, use it to increase your budget to $4100, and pay it back at $180. Should you do it or not? (b) Suppose you can take $100 from your current budget and use it to increase your current capacity from 100 to 110. Should you do it or not? Please answer the above questions without solving the LPs
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