Which of the Following Special Cases Does Not Require Reformulation

question 6

Multiple Choice

Which of the following special cases does not require reformulation of the problem in order to obtain a solution?

• A) alternate optimality
• B) infeasibility
• C) unboundedness
• D) each case requires a reformulation.

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Definitions:

Mixed Cost

A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable with further production or consumption.

Fixed Expenses

Regular expenses that do not vary in total over a wide range of activity levels.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; indicates the contribution towards covering fixed expenses and generating profit.

Net Income

The income a company retains after deducting all costs, taxes, and expenses from its total revenue.