When Using a Graphical Solution to a Linear Programming Problem

question 23

Multiple Choice

When using a graphical solution to a linear programming problem, the optimal solution will lie in an area commonly known as the:

• A) region of maximization.
• B) feasible region.
• C) objective region.
• D) constraint region.
• E) curvilinear region.

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Definitions:

Fixed Expenses

These are costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Residual Income

The amount of income that an entity has after all costs and expenses, including the cost of capital, have been deducted.

Return On Investment

A measure of the profitability of an investment, calculated by dividing the gain from the investment by the cost of the investment.