For a Minimization Problem, If a Decision Variable's Final Value

question 39

Multiple Choice

For a minimization problem, if a decision variable's final value is 0, and its reduced cost is negative, which of the following is true?

• A) Alternate optimal solutions exist.
• B) There is evidence of degeneracy.
• C) No feasible solution was found.
• D) The variable has a non-negativity constraint.

---

Definitions:

Revealed Preference

An economic concept referring to the idea that consumers' choices, reflected in their purchasing decisions, reveal their preferences for certain goods or services over others.

Weak Axiom

In economic theory, a principle stating that if a consumer prefers bundle A to bundle B, then they will not prefer B to A when prices change, keeping income constant.

Revealed Preference

A theory suggesting that consumers' preferences can be determined by observing their purchasing behavior and the choices they make among different goods.

Weak Axiom

In the context of consumer choice theory, it is a postulate stating that if a consumer prefers bundle A over bundle B when both are affordable, then she will not choose B when A becomes more affordable.