In the Simplex Method, a Tableau Is Optimal Only If

question 15

Multiple Choice

In the simplex method, a tableau is optimal only if all the c_j -z_j values are

• A)zero or negative.
• B)zero.
• C)negative and nonzero.
• D)positive and nonzero.

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Definitions:

Base Interest Rate

The minimum interest rate set by a central bank for lending to other banks, used as a benchmark for interest rates on loans and mortgages.

Pure Rate

The interest rate that reflects only the time value of money.

Liquidity Risk Premium

The additional return demanded by investors for holding assets that are not easily convertible into cash without a significant loss in value.

Savings Equals Investment

A principle in macroeconomics indicating that within an economy, total savings in a period must equal total investments.