Page 81 - 35Linear Algebra

3.5 Review Problems 81

their profit (all of which goes to shareholders, not operating costs). The
quality of oil from well A is better than from well B, so is worth 50%
more per barrel. The Greasy government cares about the environment
and will not allow Conoil to pump in total more than 6 million barrels
per year. Well A costs twice as much as well B to operate. Conoil’s
yearly operating budget is only sufficient to pump at most 10 million
barrels from well B per year. Using both a graphical method and then
(as a double check) Dantzig’s algorithm, determine how many barrels
Conoil should pump from each well to maximize their profits.

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