TO301_HomeworkAssignment1_WriteUp_JingJingWu_YusiSang_XuXin

Since the shadow price for maximal amount of tape

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Unformatted text preview: with our intuition in part b). This is probably because of the constraints for the minimum amount of cash we are supposed to have on hand. Since the production of each unit of radio requires less labor cost as compared to the tape recorders, Semicond would produce more radios than tape recorders, unlike our original intuition in part b) which shows otherwise. h) Since the shadow price for minimal tape production is 0, if the minimum units of production is within negative infinity and 37.5, the profit increases by 0 per unit increase of minimum amount of tapes....
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