Consider the Mathematical Program Below

question 115

Multiple Choice

Consider the mathematical program below. Which of the following choices represents an upper bound to the problem?
Max 10 - X²
Subject to
X ≥ 3

• A) X = 10
• B) X = 5
• C) X = 3.5
• D) X = -6
• E) X = 0

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Definitions:

Benefits Principle

The idea that people should pay taxes based on the benefits they receive from government services

Taxes

Obligatory charges imposed by authorities on the earnings of employees and the profits of businesses, or applied to the price of various commodities, services, and financial activities.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, often due to market failure, taxes, or subsidies.