In a BIP Problem with 3 Mutually Exclusive Alternatives,x₁ ,X₂

question 16

Multiple Choice

In a BIP problem with 3 mutually exclusive alternatives,x₁ ,x₂ ,and x₃,the following constraint needs to be added to the formulation:

• A)x₁ + x₂ +x₃ ≤ 1
• B)x₁ + x₂ +x₃ = 1
• C)x₁ - x₂ -x₃ ≤ 1
• D)x₁ - x₂ -x₃ = 1
• E)None of the above

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive due to market prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, usually measured at points above the supply curve.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund various public expenditures.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.