Consider the LP formulation given below for a typical two product mix problem in which the resources used are Materials, Labor Hours, and storage. Each ton of product-1 requires 2 hours of labor, 4 tons of materials, and 25 cubic meters of storage. A ton of product-2 requires 1 hours of labor, 3 tons of materials, and 30 cubic meters of storage. In every week the firm has 100 Labor Hours, 240 Tons of Materials, and a storage capacity of 2000 cubic meter. The firm makes a profit of $6 thousands per ton on product-1 and $4 thousands per ton on product-2. If the firm wants to maximize the profit, the following is the graph and the LP formulation:

Maximize 6X1 + 4X2

Subject to

2X1 + 1X2

4X1 + 3X2

25X1 + 25X2

X1, X2 > 0

You might use any method including the graph below to solve and analyze the above problem and answer the ten questions (a m) that follow:

1. For the given three resources, how much would you be willing to pay for an extra unit of each resource, assuming the cost of the resource is sunk cost? (3 point)

Resource-1: __________.

Resource-2: __________.

Resource-3: __________.

L: 4X1 + 3 -20 WmH840 : 51 + 30 = 2000 X1 + V: 0 24 6 8 ' ' 46 1 2 4 5 8 0 2 4 5 4 5 A1 Payoff: 6X Optimal Decisions(x1,x2): ( 0, 0) : X1+ = 10 : X1 + = 240 : X1 + 302 = 200