You've developed an LP model from the ground up basing your work on a client's statements of resource availability and expected output prices and a set if published entreprise budgets that were representative of the entreprises that your client considered as reasonable. The sensitivity tables for the resulting model are shown in the picture below. In that sensitivity report you will note that the shadow price for Gravity Irrigated Land is "low" and the shadow price for Operation Capital is "high".

Provide evidence-based arguments that support the characterization of these two values as "low" and "high", respectively.

Based on the evidence in the solution to this model and these two shadow prices, specifically, provide arguments for how the decision maker for this operation could improve the profitability of this firm. Specifically, for each of the two shadow prices, identify an adjustment in BOTH resources AND entreprise choices that would be expected to improve the firm's profitability and connect your rationale with the shadow price being "low" or "high". This means you will be identifying 4 combinations: (1) a resource adjustment suggested by tge "low" Gravity Irrigated Land shadow price; (2) an entreprise choice adjustement suggested by tge "low" Gravity Irrigated Land shadow price; (3) a resource adjustment suggested by the "high" Operating Capital shadow price; (4) an entreprise choice adjustment suggested by the "high" Operating Capital shadow price

Microecht Excel 1fi.0 Senelthity Report Workaheat [tab 8 solutiensine]tab A Farm Model Report Oreated: 3/21/2023 11:38:28 AM