A Variable with a Final Value Equal to Its Simple

question 17

Multiple Choice

A variable with a final value equal to its simple lower or upper bound and a reduced cost of zero indicates that

• A) an alternate optimal solution exists.
• B) an error in formulation has been made.
• C) the right hand sides should be increased.
• D) the objective function needs new coefficients.

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Definitions:

Economic Rents

Payments made to a factor of production in excess of what is needed to keep it in its current use.

Supply Of Land

The total available land that can be used for agriculture, construction, or other purposes, often considered fixed in the short term.

Price Of Land

The monetary value assigned to a piece of land based on its characteristics, location, and the market demand and supply.

Administrative Agencies

Governmental bodies responsible for the oversight and administration of specific functions, such as regulation and enforcement of laws within certain industries.