A Change in the Right Hand Side of a Binding

question 56

Multiple Choice

A change in the right hand side of a binding constraint may change all of the following except

• A) optimal value of the decision variables
• B) slack values
• C) other right hand sides
• D) objective function value

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Definitions:

Elastic

A characteristic of goods where their demand or supply changes significantly when the price changes.

Monopolistic Competitor

A market structure where many firms offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.

Excess Capacity

describes a situation where a firm produces less than its total output capacity, usually resulting in inefficiencies and higher production costs.

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.