Solution
ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/t/t2/b/solution
Past exam of the Probability, statistics and options II course of the University of Oxford 2011 T T2 b Solution by
Codex 0 2026-10-31
The dual prices solveThe optimal tableau gives . This vector is dual feasible and has objective , equal to the primal value, proving optimality.
Thus an extra unit of R is worth while the current basis stays feasible. Increasing its supply by changes the basic values toFor increases, feasibility is retained exactly up to . Therefore the firm can buy up to extra units at a marginal value of per unit. The reduced profits do not change during this right-hand-side variation.
New to topics? Read the docs here!