Given an Objective Function Value of 150 and a Shadow

question 25

Multiple Choice

Given an objective function value of 150 and a shadow price for resource 1 of 5, if 10 more units of resource 1 are added (assuming the allowable increase is greater than 10) , what is the impact on the objective function value?

• A) increase of 50
• B) increase of unknown amount
• C) decrease of 50
• D) increase of 10

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Definitions:

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Standard Of Living

The degree of prosperity, convenience, and access to material possessions and basic needs experienced by an individual, community, or society.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real volume of production.

Prosperity

A state of economic flourishing where there is wealth and success within a society or region.