A Negative Dual Price for a Constraint in a Minimization

question 16

Multiple Choice

A negative dual price for a constraint in a minimization problem means

• A)as the right-hand side increases,the objective function value will increase.
• B)as the right-hand side decreases,the objective function value will increase.
• C)as the right-hand side increases,the objective function value will decrease.
• D)as the right-hand side decreases,the objective function value will decrease.

---

Definitions:

Absorption Costing

A bookkeeping strategy that includes the total manufacturing expenses - direct materials, direct labor, and all overhead costs, both variable and fixed - in determining the cost of a product.

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced.

Absorption Costing

A financial recording technique that incorporates every manufacturing expense, such as direct materials, direct labor, and all overhead costs (variable and fixed), into the product's cost.

Net Operating Income

The profit a company generates from its core business operations, excluding deductions of interest and tax.