In a Minimization Problem, a Negative Improvement Index in a Cell

question 82

Multiple Choice

In a minimization problem, a negative improvement index in a cell indicates that the:

• A) solution is optimal.
• B) total cost will increase if units are reallocated to that cell.
• C) current iteration is worse than the previous one.
• D) total cost will decrease if units are reallocated to that cell.
• E) problem has no feasible solution.

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Definitions:

Discount

A reduction on the usual cost of a product or service, typically to stimulate its purchase.

Deadweight Loss

Deadweight loss is a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Marginal Cost

The increase or decrease in the total cost incurred by producing one additional unit of a product or service.

Socially Efficient

A situation in which resources are allocated in a way that maximizes the welfare of society as a whole.