When Do Alternate Optimal Solutions Occur in LP Models

question 75

Multiple Choice

When do alternate optimal solutions occur in LP models?

• A) When a binding constraint is parallel to a level curve.
• B) When a non-binding constraint is perpendicular to a level curve.
• C) When a constraint is parallel to another constraint.
• D) Alternate optimal solutions indicate an infeasible condition.

---

Definitions:

Nonexcludability

A characteristic of certain goods where it is difficult or impossible to prevent someone from using the good once it has been provided.

Optimal Quantity

The amount of a good or service that yields the maximum benefit or utility to the consumer or producer.

Marginal Cost

The cost of producing one additional unit of a good or service, important in making decisions about production levels and pricing.

Public Good

Goods or services that are non-excludable and non-rivalrous, meaning they can be used by many without diminishing availability to others.