A Constraint with a Positive Slack Value

question 24

Multiple Choice

A constraint with a positive slack value

• A)will have a positive dual price.
• B)will have a negative dual price.
• C)will have a dual price of zero.
• D)has no restrictions for its dual price.

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Definitions:

Demand for Labor

The total amount of labor that employers are willing and able to hire at a given wage rate in a certain period.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Wage Rate

The amount of compensation workers receive in exchange for their labor, typically expressed per hour, day, or piece rate.

Economic Rent

The excess payment made to a factor of production over and above what is needed to bring that factor into productive use.