Chapter 6.1, Problem 5P

a.

Explanation of Solution

Range of values

• Let ${\text{c}}_{\text{1}}$ be the profit from type 1 radio and ${\text{c}}_{\text{2}}$ be the profit from type 2 radio.
• There are two constraints ${\text{L}}_{\text{1}}$ and ${\text{L}}_{\text{2}}$

b.

Explanation of Solution

Range of values

• Let ${\text{c}}_{\text{1}}$ be the profit from type 1 radio and ${\text{c}}_{\text{2}}$ be the profit from type 2 radio.
• There are two constraints ${\text{L}}_{\text{1}}$ and ${\text{L}}_{\text{2}}$

c.

Explanation of Solution

New optimal solution

• Let ${\text{c}}_{\text{1}}$ be the profit from type 1 radio and ${\text{c}}_{\text{2}}$ be the profit from type 2 radio.
• There are two constraints ${\text{L}}_{\text{1}}$ and ${\text{L}}_{\text{2}}$.
• For a maximization problem, the new optimal value = (old optimal value) + (Constraint i’s shadow price)

d.

Explanation of Solution

Range of values

• Let ${\text{c}}_{\text{1}}$ be the profit from type 1 radio and ${\text{c}}_{\text{2}}$ be the profit from type 2 radio.
• There are two constraints ${\text{L}}_{\text{1}}$ and ${\text{L}}_{\text{2}}$.
• For a maximization problem, the new optimal value = (old optimal value) + (Constraint i’s shadow price)

e.

Explanation of Solution

Shadow price

• Let ${\text{c}}_{\text{1}}$ be the profit from type 1 radio and ${\text{c}}_{\text{2}}$ be the profit from type 2 radio.
• There are two constraints ${\text{L}}_{\text{1}}$ and