An Objective Function Reflects the Relevant Cost of Labor Hours

question 8

Multiple Choice

An objective function reflects the relevant cost of labor hours used in production rather than treating them as a sunk cost. The correct interpretation of the dual price associated with the labor hours constraint is

• A) the maximum premium (say for overtime) over the normal price that the company would be willing to pay.
• B) the upper limit on the total hourly wage the company would pay.
• C) the reduction in hours that could be sustained before the solution would change.
• D) the number of hours by which the right-hand side can change before there is a change in the solution point.

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Definitions:

Adventitious

Referring to structures that develop in an unusual place, especially roots that form from non-root tissues or buds that appear in unusual positions on a plant.

Mycorrhizal

Mycorrhizal relationships are symbiotic associations between fungi and the roots of plants, enhancing nutrient and water absorption.

Fibrous

Consisting of or characterized by fibers, often referring to a type of tissue in plants or the structure of certain muscle tissues in animals.