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Unformatted text preview: . Here we look at the shadow price for labour, our output above tells us that for each additional unit of
labour, our profit increases by 0.4667 units. If we increase labour by 40 hours, from the dual variable, we
know our profit will increase by 40 * 0.4667 = 18.667 units ($).
1e. Product 2 has an upper bound of 14 for its allowable range of changes, which is a $7 increase from the
current price of $7. From the data given, product 2 can earn up to 14$ per unit while maintaining current
policy....
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 Fall '13

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