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.

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Definitions:

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Utilitarianism

An ethical theory proposing that the best action is the one that maximizes happiness for the greatest number of people.

Veil Of Ignorance

A principle that one should design society's rules as if they do not know their own socioeconomic position, to ensure fairness.

Equality Of Opportunity

The ideal that all individuals should have the same chances to pursue success or advancement, regardless of their background or circumstances.