Linear Programming Is a Tool That Maximizes Total Contribution Margin

question 154

True/False

Linear programming is a tool that maximizes total contribution margin of a mix of products with multiple constraints.

---

Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries or to generate revenue.

Smoot-Hawley Tariff

The U.S. tariff law of the 1930s, which set the highest tariffs in U.S. history (60 percent). It set off an international trade war and caused the decline in trade that is often considered one of the causes of the worldwide depression of the 1930s.

Export Subsidy

A governmental financial support for companies exporting products, designed to encourage exports by making them price competitive in global markets.

Dumping

A firm’s or an industry’s sale of products on the world market at prices below its own cost of production.