If the Right-Hand Side of Resource B Is Increased by 30,and

question 11

Multiple Choice

If the right-hand side of Resource B is increased by 30,and the right-hand side of Resource C is decreased by 10,then:

• A)the optimal solution remains the same
• B)the optimal solution will change
• C)the shadow prices are valid
• D)the shadow prices may or may not be valid
• E)None of the above

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Definitions:

Marginal Cost

The expense involved in making an extra unit of a good or service.

Additional Unit

Refers to one more unit of something, often used in the context of production, sales, or inventory.

Variable Cost

Expenses that change in proportion to the activity of a business such as production levels or sales volume.

Wages

Compensation received by employees for their labor, typically expressed as an hourly, daily, or piecework rate, or as an annual salary.