In the Optimal Solution to This Scenario, Purse Production Falls

question 75

Multiple Choice

In the optimal solution to this scenario, purse production falls in between the upper and lower constraints.None of the items with maximum demands are produced to their limit.Which of these statements is valid?

• A)The shadow price for purses must be zero.
• B)Purses are more profitable than jackets.
• C)It is more cost-effective to produce and sell leather pants than leather purses.
• D)Nothing can be concluded from this statement.

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Definitions:

Personality

An individual's characteristic pattern of thinking, feeling, and behaving that distinguishes one person from another.

Choice Corollary

A principle in George Kelly's personal construct psychology that suggests individuals choose for themselves the construction process that they anticipate will best help them anticipate future events.

Psychotics

Individuals suffering from psychosis, a mental disorder characterized by a disconnection from reality.

Neurotics

Individuals who experience emotional distress and mental instability, but have a strong grip on reality.