The following primal LP problem represents the production possibilities of a price-taking entrepreneur who uses three inputs to produce two outputs.

a) Identify (show) which coefficients should be interpreted as output market prices, input supplies, and technical coefficients to transform inputs into outputs.

b) Solve the above LP problem by graphical methods. Show clearly the values of the optimal solution, that is, list the optimal values of all the primal variables x∗
1, x∗
2, x∗
s1, x∗
s2, x∗
s3. Evaluate the total revenue ob ective function at the optimum point.

c) Which constraint(s) is (are) binding (satisfied with equality) at the optimal point?

d) What is the value of the shadow price(s) (dual variables) associated with the non-binding (D

e) Solve the dual problem using the information derivable from the Complementary Slackness Conditions. Show that max T R = min T C.

maximize TR 1 +222 = sub ect to 21 +32 12 Line 1 21224 Line 2 321 322 18 Line 3 21 0,2 0