All of the Following Are True About a Variable with a Negative

question 75

Multiple Choice

All of the following are true about a variable with a negative reduced cost in a maximization problem except

• A)its objective function coefficient must increase by that amount in order to enter the basis.
• B)it is at its simple lower bound.
• C)it has surplus resources.
• D)the objective function value will decrease by that value if the variable is increased by one unit.

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Definitions:

Marginal Cost

The hike in expense for producing another unit of a product or service.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Output Level

The quantity of goods or services produced by a business, industry, or economy at a given time.