If One Changes the Contribution Rates in the Objective Function

question 79

Multiple Choice

If one changes the contribution rates in the objective function of an LP,

• A)the feasible region will change.
• B)the slope of the isoprofit or isocost line will change.
• C)the optimal solution to the LP is sure to no longer be optimal.
• D)All of the above
• E)None of the above

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Definitions:

Total Revenues

The total income that a firm receives from the sale of its goods and services.

Inelastic

Describing a situation in which the demand or supply for a good or service is not significantly changed when the price changes.

Price Range

The spread between the highest and lowest price at which a product, service, or asset is traded or offered for sale.

Ed

A common abbreviation for price elasticity of demand, which measures how much the quantity demanded of a good responds to a change in its price.