Consider the Portion of the Sensitivity Analysis Report That Follows

question 5

Multiple Choice

Consider the portion of the sensitivity analysis report that follows.Decreasing the right-hand constraint Calcium by 1 unit (30 to 29) will result in which of the following? $$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Constraints } & & & & & & \\\hline \text { Cell } & \text { Name } & \text { Final Value } & \begin{array} { l } \text { Shadow } \\\text { Price }\end{array} & \begin{array} { l } \text { Constrant } \\\text { RH. Side }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm { H } \$ 5 & \text { Calcium } & 30 & 0 & 30 & 0 & 1 \mathrm { E } + 30 \\\hline \$ \mathrm { H } \$ 5 & \text { Protein } & 40 & 0.025 & 40 & 20 & 0 \\\hline \$ \mathrm { H } \$ 7 & \text { Calories } & 18 & 0.25 & 18 & 0 & 6 \\\hline\end{array}$$

• A)decrease cost by $0.225
• B)does not affect cost
• C)increase cost by $0.225
• D)increase cost by $0.025

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.

Over Supplied

A market condition where the quantity of a good or service available exceeds the quantity demanded at the current price, often leading to a surplus and typically pressure on prices to decrease.

Marginal Cost

The rise in expenses for producing one more unit of a product or service.

Efficient Amount

The level of production or consumption that maximizes welfare and minimizes waste within an economy, often used in reference to optimal resource allocation.