Question: Problem 1. (26 points) You are asked to review the relative efficiency of five firms. The main input used in each firm is the land

Problem 1. (26 points) You are asked to review the relative

Problem 1. (26 points) You are asked to review the relative efficiency of five firms. The main input used in each firm is the land for apple trees grown in their own yards for two products: apple juice and apple sauce. The input and output data are shown below. You are now consulted by the owner to conduct a data envelopment analysis (DEA) and make your recommendations. a. Formulate an LP model for the problem. b. Determine the efficiency of each firm using the distance function. c. Validate your outputs in part b) using Solver in a spreadsheet model. d. Determine the reference sets for the inefficient firm(s). e. What is the output level the inefficient firm(s) should reach to be efficient

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