In a Linear Programming Problem How Can the Optimum, Maximising

question 2

Multiple Choice

In a linear programming problem how can the optimum, maximising, solution be identified?

• A) The point within the feasibility region, intersecting the line defining the objective function, furthest up the vertical (y) axis
• B) The point within the feasibility region, intersecting the line defining the objective function, furthest along the horizontal (x) axis
• C) The point within the feasibility region, intersecting the line defining the objective function, that is closest to the origin
• D) The point within the feasibility region, intersecting the line defining the objective function, that is furthest away from the origin

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Definitions:

Borrowed Funds Cost

The cost associated with borrowing money, including interest payments and any other fees.

Tax Rate

The tax rate applicable to the income earned by individuals or corporations.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading the cost over its expected useful life.

Depreciation Tax Shield

A deduction that reduces taxable income due to the depreciation of assets, thereby lowering one's tax liability.