Use the Following Information to Answer the Questions) Below -When a Model Has a Unique Optimal Solution, It Means

question 1

Multiple Choice

Use the following information to answer the questions) below.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. $\begin{array}{|l|l|l|l|l|l|l|} \hline&{\text { A }} & \text { B } &C&D&E&F\\\hline 1 & \text { Cerebro } & \\ & \text { Manufacturing Model } & \\\hline 2 & & \\\hline3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips } &\begin{array} { l } \text { Machine } \\\text { Capacity } \\\text { mins./year) } \\\end{array}\\\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \\\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \\\hline 6 & \text { Gross margin/minute } & & & & & \\\hline 7 & \text { Maximum production } & & & & & \\\hline 8 & \text { Profit } & & & & & \\\hline\end{array}$
-When a model has a unique optimal solution, it means that .

• A) the objective is maximized or minimized by more than one combination of decision variables
• B) there is no solution that simultaneously satisfies all the constraints
• C) the Allowable Increase or Allowable Decrease values for changing cells are zero
• D) there is exactly one solution that will result in the maximum or minimum objective

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Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products or services that are similar but not perfect substitutes, leading to competitive pricing and differentiation.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, accounting for the cost of opportunity.

Efficient Output

The level of production at which a company or economy can produce the maximum amount of goods and services with the least amount of input costs.

Cost Curves

Graphs in economics that show how the cost of producing a good or service varies with the quantity produced.