If the Dual Price for B₁ Is 2 $\le$ B₁ $\le$ 50, and the Original Value of B₁ Was 30, Which

question 10

Multiple Choice

If the dual price for b₁ is 2.7, the range of feasibility is 20 $\le$ b₁ $\le$ 50, and the original value of b₁ was 30, which of the following is true?

• A)There currently is no slack in the first constraint.
• B)We would be willing to pay up to $2.70 per unit for up to 20 more units of resource 1.
• C)If only 25 units of resource 1 were available, profit would drop by $13.50.
• D)Each of the above is true.

---

Definitions:

Marginal Social Costs

The total cost to society of producing one additional unit of a good or service, including both private costs and any externalities.

Social Welfare

The overall well-being of a society, encompassing economic, social, and environmental dimensions, often considered in policy-making.

Pollution

The entry of pollutants into the natural ecosystem resulting in harmful modifications.

External Benefit

An uncompensated benefit that an individual or firm confers on others; also known as positive externality.