Use the Method of Corners to Solve the Problem

question 153

Multiple Choice

Use the method of corners to solve the problem. Find the range of values that the coefficient of x can assume without changing the optimal solution.
Find the range of values that resource 1 can assume.
Find the shadow price for resource 1.
Identify the binding and nonbinding constraints.

• A) x = 2, y = 8, P = 20 Constraint 1 is binding; constraint 2 is nonbinding. ​
• B) x = 2, y = 8, P = 46 Both constraints are binding.
• C) x = 2, y = 2, P = 46 Both constraints are binding.
• D) x = 8, y = 2, P = 46 Both constraints are binding.

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