An Optimization Analysis Finds the Optimum Value for a Target

question 151

Multiple Choice

An optimization analysis finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints.What can a manager determine by changing revenue and cost variables in an optimization analysis?

• A)calculate the highest potential profits
• B)calculate employee benefit payments
• C)use this as an extension for a digital dashboard
• D)create production schedules

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Definitions:

Labor

The employment of human physical and psychological skills in the production process of goods and services.

Capital

Financial assets or the financial value of assets, such as cash and securities, or fixed assets like buildings and machinery, that are used in producing goods or services.

Short-Run

A period of time during which at least one of a firm's inputs is fixed.

Machines

Devices or systems of devices that perform tasks or assist in the performance of tasks, often using mechanical, electrical, or computer-driven components.