A Maximizing Linear Programming Problem with Constraints C1, C2, and C3

question 94

Multiple Choice

A maximizing linear programming problem with constraints C1, C2, and C3 has been solved. The dual values associated with the problem are C1 = $2, C2 = $0.50, and C3 = $0. Which statement below is false?

• A) One more unit of the resource in C1 would add $2 to the objective function value.
• B) One more unit of the resource in C2 would add one more unit each of X and Y.
• C) The resource in C3 has not been used up.
• D) The resources in C1 and in C2, but not in C3, are scarce.
• E) The resource in C2 must be used up first.

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Definitions:

Asset Revaluation Reserve

An equity account that records increases in the carrying amount of a company's assets, reflecting changes in value over time.

General Reserve

A reserve fund set aside out of profits for the purpose of strengthening the company's financial position and fulfilling future needs or contingencies.

Acquisition Excess

The amount by which the purchase price of an acquired asset or business exceeds its fair value, often recognized as goodwill.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at cost and adjusted for the investor's share of the investee's profit or loss.