In Applying Bellman's Principle of Optimality for Dynamic Programming Using

question 35

Multiple Choice

In applying Bellman's principle of optimality for dynamic programming using backwards recursion for a maximization problem, at a given state within a given stage:

• A)it does not matter how that state is reached.
• B)that state was reached using an optimal set of decisions from the first stage.
• C)the shortest distance route to the next stage will be selected.
• D)the longest distance route to the next stage will be selected.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor expenses.

Relevant Costs

Relevant costs are those that will be affected by a decision in a specific situation and are considered when making financial or other managerial decisions.

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain scale.

Product

Any item or service that is created through a process and is intended to be supplied to a market to satisfy a want or need.