You Are Faced with a Linear Programming Objective Function Of

question 27

Multiple Choice

You are faced with a linear programming objective function of: Max P = $20X + $30Y
And constraints of:
3X + 4Y = 24 (Constraint A)
5X - Y = 18 (Constraint B)
You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is True?

• A) You can change quantities of X and Y at no cost for Constraint B.
• B) For every additional unit of the objective function you create, you lose 0 units of B.
• C) For every additional unit of the objective function you create, the price of A rises by $7.50.
• D) The most you would want to pay for an additional unit of A would be $7.50.

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Definitions:

Technological Advancement

The process of innovation and improvement in technology, leading to the development of new products or the enhancement of existing ones.

Higher Value Use

The employment of resources or assets in a manner that maximizes their value or return, often resulting in the most efficient and profitable outcome.

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A situation where a business's operating expenses exceed its revenues, indicating that it is not making a profit from its core operations.

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Large retail establishments that offer a wide variety of goods and services across multiple departments, such as clothing, household goods, and appliances, under one roof.