Examlex

Solved

Given the Following Feasible Solution Determine If the Problem Is

question 1

Essay

Given the following feasible solution determine if the problem is degenerate and then find the optimal solution and its cost. Assume that capacity for source A is 10 and 30 for source B. Destination A demands 10 units while destination B demands 30 units. Cost of shipping per unit is given as AA ($4), AB ($1), BA ($3), and BB ($2).
 Destination A  Destination B  Source A 10 Source B 30\begin{array} { | l | c | c | } \hline & \text { Destination A } & \text { Destination B } \\\hline \text { Source A } & 10 & \\\hline \text { Source B } & & 30 \\\hline\end{array}


Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Total Cost

The sum of all costs incurred by a business in producing goods or services, including both fixed and variable costs.

AVC

An alternative term for Average Variable Cost, reflecting the variable costs incurred per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs associated with the production of a good or service.

Related Questions