​Interpret the Dual Price for Any Two of the Following

question 29

Essay

​Interpret the dual price for any two of the following constraints: 1) the available funds in a portfolio selection model,
2) the cash requirement due at the beginning of a year in a financial planning model, and 3) the manufacturing
capacity in a make-or-buy decision model.

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Definitions:

Price Discrimination

A pricing strategy where a company sells the same product or service at different prices to different customers, based on factors like willingness to pay, market segment, and purchase location.

Increase Profits

Increase Profits means enhancing the financial gain left after subtracting the expenses from the total revenues, aiming for a higher bottom line through various strategies like reducing costs or increasing sales.

Lower Total Costs

Achieving a reduction in the aggregate amount of expenditures necessary for production or provision of services.

Price Discrimination

The strategy of selling the same product to different customers at different prices, based on their willingness to pay.