The ________ Is the Difference Between the Right- and Left-Hand

question 97

Multiple Choice

The ________ is the difference between the right- and left-hand sides of a constraint.

• A)shadow price
• B)slack
• C)allowable increase
• D)optimal solution

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Definitions:

Comparative Advantage

Comparative advantage is an economic principle that posits a country or entity can produce a good or service at a lower opportunity cost than another, leading to more efficient trade possibilities.

Opportunity Cost

Forgoing the possibility of profit from various alternatives by choosing a specific one.

Production

The method of merging different tangible and intangible inputs (like designs and expertise) to produce an item meant for consumption (known as the output).

Opportunity Cost

The cost of foregone alternatives when one option is chosen over another.