Question: 2. Consider a resource allocation (product mix) problem with the follow- ing optimal tableau: S1 -8 13 21 0 0 1 0 12 -2 -2

2. Consider a resource allocation (product mix)

2. Consider a resource allocation (product mix) problem with the follow- ing optimal tableau: S1 -8 13 21 0 0 1 0 12 -2 -2 1.25 -5 13 S1 0 1 1 0 0 0 0 0 S2 S3 2 10 2 8 -0.5 1.5 2 -10 -10 -600 -5 21 -2 Recall that the objective is to maximize profit. Answer each question starting from this optimal tableau. (g) (5 points) You have an opportunity to sell one unit of resource 3. What is the minimum premium would you charge to ensure that your profit doesn't decrease? How much would you be willing to sell? (h) (5 points) You have an opportunity to buy additional units of resource 2 at a premium of $5/unit. How much would you be willing to buy if you wanted to keep the current activity mix? How much additional profit would you be able to earn? (i) (7 points) Derive a formula for how the production plan changes as a function of the amount of additional resource 2 you buy in part 2h? 2. Consider a resource allocation (product mix) problem with the follow- ing optimal tableau: S1 -8 13 21 0 0 1 0 12 -2 -2 1.25 -5 13 S1 0 1 1 0 0 0 0 0 S2 S3 2 10 2 8 -0.5 1.5 2 -10 -10 -600 -5 21 -2 Recall that the objective is to maximize profit. Answer each question starting from this optimal tableau. (g) (5 points) You have an opportunity to sell one unit of resource 3. What is the minimum premium would you charge to ensure that your profit doesn't decrease? How much would you be willing to sell? (h) (5 points) You have an opportunity to buy additional units of resource 2 at a premium of $5/unit. How much would you be willing to buy if you wanted to keep the current activity mix? How much additional profit would you be able to earn? (i) (7 points) Derive a formula for how the production plan changes as a function of the amount of additional resource 2 you buy in part 2h

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