A Transportation Problem Has 8 Origins and 6 Destinations

question 29

Multiple Choice

A transportation problem has 8 origins and 6 destinations. The optimal solution of this problem will fill no more than __________ cells with quantities to be shipped.

• A) 2
• B) 13
• C) 14
• D) 48
• E) cannot be calculated without knowing the supply and demand totals

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Definitions:

Normal Profit

The minimum level of profit necessary for a company to remain competitive in the market, often considered the break-even point.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one more unit of a good or service. It is a critical concept in economics for decision-making regarding production levels.

Purely Competitive Market

A market structure characterized by many buyers and sellers, all of whom are selling a homogeneous product, with no single buyer or seller able to influence the market price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing excess return over perfect competition.