Question

Consider the following linear program, which maximizes profit for two products: regular (R) and super (S): MAX5R+75 S s.t. 1.2R+1.6 S≤600 assembly (hours) 0.8R+0.5 S≤300 paint (hours) 0.16R+0.4S≤100 inspection (hours) R,S>=0 See the sensitivity report provided below: Regarding the resource "assembling (hours)" Please choose the option that best fit the empty space above. If the company has more hours of this process they will be willing to pay more for this resource. If the company has only 450 hours of this process they will be willing to pay less for this resource. If the company has more hours of this process they will be willing to pay less for this resource. If the company has only 150 hours of this process they will no longer be willing to pay nothing (zero) for this resource. None of the above

Answer 1

The correct option is C: If the company has more hours of this process they will be willing to pay less for this resource.

In the sensitivity report, the shadow price for the "assembly (hours)" constraint is 0, indicating that an increase in the available hours for the assembly process will not affect the optimal solution's objective function value (profit). Therefore, if the company has more hours of the assembly process, they will be willing to pay less for this resource, as it does not contribute to improving the objective function.