A Binding Greater Than or Equal to (≥) Constraint in a Minimization

question 55

Multiple Choice

A binding greater than or equal to (≥) constraint in a minimization problem means that

• A) the variable is up against an upper limit.
• B) the minimum requirement for the constraint has just been met.
• C) another constraint is limiting the solution.
• D) the shadow price for the constraint will be positive.

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Realized Holding Gains

Gains recognized from the sale of an investment or asset that were previously unrealized.

Rising Prices

An economic condition characterized by a general increase in consumer prices or the cost of living, often referred to as inflation.