A Company Is Developing a Linear Programming Model for Its

question 75

Multiple Choice

A company is developing a linear programming model for its aggregate production plan. If W_t = workforce size for period t, H_t = number of workers hired for period t, and F_t = number of workers fired for period t, then the company's workforce constraint for period 4 is

• A) W₄ = W₃ - H₄ + F₄.
• B) W₄ = W₃ + H₄ - F₄.
• C) W₄ = W₃ + H₃ - F₃.
• D) W₄ = W₃ + H₄.

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Definitions:

Profit-Maximizes

The strategy or action by a firm to adjust its production and pricing to achieve the highest possible profit.

Cost

The value of everything a seller must give up to produce a good.

Long Run Adjustment

The process through which input levels, production capacities, and market prices stabilize in response to sustained changes in demand or supply.

Profit-Maximizes

Refers to a strategy or actions by firms aiming to achieve the highest possible profit given their constraints and market conditions.