To Use the Hungarian Method,a Profit-Maximization Assignment Problem Requires

question 18

Multiple Choice

To use the Hungarian method,a profit-maximization assignment problem requires

• A)converting all profits to opportunity losses.
• B)a dummy agent or task.
• C)matrix expansion.
• D)finding the maximum number of lines to cover all the zeros in the reduced matrix.

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Definitions:

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a loss of economic value.

Property Rights

Legal rights to possess, use, and dispose of assets, including real property or intellectual property, ensuring control and economic benefits to the rights holder.

External Costs

Costs of a transaction or activity that affect parties who are not directly involved in it, such as pollution affecting the wider community.

Law of Demand

The principle that, all else being equal, an increase in the price of a good will decrease the quantity demanded, and a decrease in price will increase the quantity demanded.