Question
Economics Question on Linear Equation in 2 or more Variables
A general linear programming problem which is a maximization problem in two decision variables (x1 and x2) and two resource constraints (b1, and b2) can be set up in the following way:
A. Specify the inequality constraints also known as the resource constraints as a11x1+a12x2 ≤ b1 and a21x1+ a22x2 <b2 ; and non-negativity constraints: x1 ≥0, x2 ≥ 0.
B. Solve the problem and plot the constraints on a graph in (x1, x2) space to define the feasible solution.
C. Specify the criterion function which involves maximizing a linear function: max, z=c1x1+c2x2.
D. The optimal solutions given by (x1∗,x2∗) can be used to find the maximum value of the objective function z*.
Choose the correct answer from the options given below:
D, A, B, C
C, A, B, D
C, B, D, A
D, C, B, A
C, A, B, D
Solution
The correct answer is (B) : C, A, B, D