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Unformatted text preview: University of California, Davis 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 #9 Due Tuesday, March 9 1. Consider the following LP problem and optimal tableau max Z = 3 x 1 + 5 x 2 subject to 2 x 1 + 4 x 2 16 6 x 1 + 3 x 2 18 x 1 , x 2 Z x 1 x 2 x s 1 x s 2 sol P IB . . . 1 1 / 3 1 / 9 . . . 10 / 3 . . . 1 1 / 6 2 / 9 . . . 4 / 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . 7 / 6 1 / 9 . . . 62 / 3 x 2 x 1 Z sol D y s 1 y s 2 y 1 y 2 R A) State the rules of the appropriate algorithm used in solving the above problem. Practice your technical skill by solving the above LP problem and verify that your solution is identical to the given tableau. B) Derive the demand functions for each of the two inputs. You must draw the appropriate revenue and demand function graphs. C) Derive the supply function for each of the two outputs. You must draw the appropriate revenue and supply function diagrams....
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