The Binding Constraints for This Problem Are the First and Second

question 23

Essay

The binding constraints for this problem are the first and second. ​
a.Keeping c₂ fixed at 2,over what range can c₁ vary before there is a change in the optimal solution point?
b.Keeping c₁ fixed at 1,over what range can c₂ vary before there is a change in the optimal solution point?
c.If the objective function becomes Min 1.5x₁ + 2x₂,what will be the optimal values of x₁,x₂,and the objective function?
d.If the objective function becomes Min 7x₁ + 6x₂,what constraints will be binding?
e.Find the dual price for each constraint in the original problem.

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Definitions:

Base Amount

A fundamental quantity or value from which other calculations or analyses are derived.

Business Segment

A distinct part of a company that focuses on a specific product or market sector, often with its own performance measurement.

Debt to Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of equity and debt used to finance the company's assets.

Comparative Financial Statement

Financial statements that provide a comparison of a company's financial performance over multiple periods.