are155-homework-2

are155-homework-2 - University of California Davis...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Department of Agricultural and Resource Economics “We are what we repeatedly do. Excellence then is not an act, but a habit.” Aristotle Copyright c ± 2010 by Quirino Paris. ARE 155 Winter 2010 Prof. Quirino Paris HOMEWORK #2 Due Tuesday, January 19 1. Given the following LP problem max Z = 6 x 1 + 3 x 2 subject to 2 x 1 + 6 x 2 12 5 x 1 + 2 x 2 10 x 1 and x 2 0 a) Graph the output space. b) Graph the input requirement space (do not forget vectors associated with slack variables). c) For each extreme point (basic feasible solution) in the output space indicate the corresponding basis in the input requirement space. d) Solve the problem by graphical methods and report the optimal basis and the optimal solution. (In a graph, it may be difficult to read the exact optimal solution. Be as accurate as possible: choose the appropriate measurement units on the axes of your diagram.) 2. Given the following LP problem max TR = 2 x 1 + 4 x 2 + 6 x 3 subject to 3 x 1 + x 2 4 x 3 9 x 1 + 4 x 2 + 3 x 3 8 x i 0 , i = 1 , 2 , 3 a) graph the set of constraints in the input requirement space and indicate ex- plicitly all the feasible bases. b) for each feasible basis in a) write down the corresponding basic feasible solution in qualitative terms . c) Use the notion of a total cost function to derive marginal cost. Derive marginal
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/18/2010 for the course ARE 155 taught by Professor Staff during the Winter '08 term at UC Davis.

Page1 / 3

are155-homework-2 - University of California Davis...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online