The Variable to Remove from the Current Basis Is the Variable

question 7

True/False

The variable to remove from the current basis is the variable with the smallest positive c_j - z_j value.

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Definitions:

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or demands.

Increase in Income

An upward movement in an individual's or a nation's earnings, due to factors like higher wages, investment returns, or business profits.

Decrease in Quantity

A reduction in the amount of a good or service produced or consumed.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, typically represented by the area above the supply curve and below the market price.