The Principle of "Complementary Slackness" Implies That

question 13

Multiple Choice

The principle of "complementary slackness" implies that:

• A)if the reduced cost is not zero, than the value of the decision variable is zero.
• B)if a decision variable is zero, then its reduced cost must be positive.
• C)if a decision variable is zero, then its reduced cost must be non-zero.
• D)if a decision variable is zero, then its reduced cost must be zero.

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Definitions:

Excess Supply

The situation where the quantity of a good or service that is available exceeds the quantity demanded by consumers at the current price.

Excess Demand

A market condition where the quantity demanded of a product exceeds the quantity supplied, often resulting in upward pressure on prices.

Price Cheeseburger

The financial cost or value assigned to purchasing a cheeseburger, often influenced by factors such as ingredients, location, and brand.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price over a given period of time, influenced by price, income, and other factors.