Question
You already considered the problem of the firm is to maximize profit given a constraint on production. Profit = 40F + 30S and a constraint
You already considered the problem of the firm is to maximize profit given a constraint on production. Profit = 40F + 30S and a constraint is that units of F and S require amounts of material 3 but the firm only has 21 total units of material 3. The constraint on material 3 is .6F + .3S 21 From the sensitivity report in Excel 1) describe the sensitivity of the 40 in the profit function and then do the same for the 30 in the profit function. 2) describe the sensitivity of the 21 in the constraint. 3) does either variable have a reduced cost value that is not zero? If so, say which variable and give two interpretations of the value.
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