The Dual Price Measures, Per Unit Increase in the Right

question 43

Multiple Choice

The dual price measures, per unit increase in the right hand side,

• A)the increase in the value of the optimal solution.
• B)the decrease in the value of the optimal solution.
• C)the improvement in the value of the optimal solution.
• D)the change in the value of the optimal solution.

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Definitions:

Constrained Resource

A limited resource that restricts a company's ability to produce goods, offer services, or achieve its objectives.

Contribution Margin

The difference between the sales revenue and variable costs of a product, showing how much revenue contributes towards covering fixed costs and generating profit.

Avoidable Costs

Expenses that can be eliminated if a particular decision is made or if an activity is ceased.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not affect future business decisions.