A Company Wants to Select No More Than 2 Projects

question 30

Multiple Choice

A company wants to select no more than 2 projects from a set of 4 possible projects. Which of the following constraints ensures that no more than 2 will be selected?

• A) X₁ + X₂ + X₃ + X₄ = 2
• B) X₁ + X₂ + X₃ + X₄ ≤ 2
• C) X₁ + X₂ + X₃ + X₄ ≥ 2
• D) X₁ + X₂ + X₃ + X₄ ≥ 0

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Definitions:

Consumer Surplus

The distinction between the full amount consumers are willing and able to spend on a good or service and the actual sum paid.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product, above the equilibrium price.

Consumer Surplus

The discrepancy between the total price consumers are willing to pay for a service or good versus what they actually spend on it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service compared to what they actually pay.