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:

Bonds Payable

Long-term liabilities that represent money a company owes to bondholders, to be repaid at a specified maturity date.

Carrying Value

The net amount at which an asset is valued on the balance sheet, calculated as the original cost minus any accumulated depreciation, depletion, or amortization.

Discount

A reduction in the price of goods or services, often used as a promotional tool or to encourage quicker payment.

Annual Interest Rate

The percentage of a sum of money charged for its use for one year, representing the cost of borrowing money or the benefit of saving it.