In a Linear Programming Problem, the Objective Function Was Specified

question 17

Multiple Choice

In a linear programming problem, the objective function was specified as follows:
Z = 2 A + 4 B + 3 C
The optimal solution calls for A to equal 4, B to equal 6, and C to equal 3. It has also been determined that the coefficient associated with A can range from 1.75 to 2.25 without the optimal solution changing. This range is called A's

• A)range of optimality.
• B)range of feasibility.
• C)shadow price.
• D)slack.
• E)surplus.

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Definitions:

Perceived MC

Perceived Marginal Cost represents the cost perceived by a firm or individual for producing one additional unit of a good or service, factoring in not only direct cost but also subjective considerations.

Optimal Quantity

The ideal amount of a good or service that achieves the best possible outcome or utility for a consumer or company, balancing cost and benefits.

Minimum Variable Cost

The lowest point on the curve where a firm covers all its variable costs of production without considering fixed costs, often relevant in short-run output decisions.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to significantly influence market prices.