When Do Alternate Optimal Solutions Occur in LP Models

question 75

Multiple Choice

When do alternate optimal solutions occur in LP models?

• A) When a binding constraint is parallel to a level curve.
• B) When a non-binding constraint is perpendicular to a level curve.
• C) When a constraint is parallel to another constraint.
• D) Alternate optimal solutions indicate an infeasible condition.

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Definitions:

Physical Flow

The tracking of physical units as they move through the production process.

Specific Identification

A method in inventory accounting that tracks the actual cost of specific items sold and in inventory.

Net Income Manipulation

The practice of altering financial statements to present a more favorable picture of a company's profits.

Average Cost Formula

A method used to calculate the cost of goods sold and ending inventory by taking the total cost of goods available for sale and dividing it by the total number of units available for sale.