What is the optimal solution to the given problem


Discussion:

Consider the following LP problem developed at Jeff Spencer's San Antonio optical scanning firm:

Maximize profit = $1 X1+ $1 X2

Subject to: 2X1 + 1X2 ≤100

1X1+ 2 X2 ≤100

a) What is the optimal solution to this problem? Solve it graphically.

1. If a technical break through occurred that raised the profit per unit of X1 to$3, would this affect the optimal solution?

2. Instead of an increase in the profit coefficient X1, to $3, suppose that profit was overestimated and should only have been $1.25. Does this change the optimal solution?

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Microeconomics: What is the optimal solution to the given problem
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