A Linear Programming Maximization Problem Has Been Solved

question 69

Multiple Choice

A linear programming maximization problem has been solved. In the optimal solution, two resources are scarce. If an added amount could be found for only one of these resources, how would the optimal solution be changed?

• A) The shadow price of the added resource will rise.
• B) The solution stays the same; the extra resource can't be used without more of the other scarce resource.
• C) The extra resource will cause the value of the objective to fall.
• D) The optimal mix will be rearranged to use the added resource, and the value of the objective function will rise.
• E) none of the above

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Definitions:

Demand

The desire to purchase goods and services backed by the ability and willingness to pay, at a given price level within a specific time period.

Quantity Demanded

refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

CDs

Certificates of Deposit, savings certificates with a fixed maturity date and specified fixed interest rate, offering a low-risk investment option.