Final answer:
The penalty for the row [3,3,2] in Vogel's Approximation Method is calculated as the difference between the second smallest cost and the lowest cost, which is 3 - 2 = 1.
Step-by-step explanation:
Vogel's Approximation Method (VAM) is an approach to solving transportation problems in optimization. When calculating the penalty for a given row in VAM, the penalty is the difference between the smallest and the second smallest costs in that row. In the given row [3,3,2], the lowest cost is 2, and the second lowest is 3 (even though it appears twice, we just consider the next distinct cost). Therefore, the penalty for the row is 3 - 2 = 1.