Suppose You Want to Maximize an Objective Function Z=2x₁+3x₂

question 78

Multiple Choice

Suppose you want to maximize an objective function z=2x₁+3x₂. Both decision variables must be integer. The optimal solution to the LP relaxation will:

• A) be smaller than the optimal IP solution
• B) be larger than the optimal IP solution
• C) can be either smaller or larger than the optimal IP solution
• D) will be within 5% of the optimal IP solution value

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Definitions:

Market System

Investment, production, and distribution closely follow supply and demand directives in this economic system, which allows for the free fluctuation of goods and services prices within an unrestricted price system.

Total Revenues

The overall income received by a firm from selling its goods or services, calculated as the price of the good multiplied by the quantity sold.

Total Costs

The sum of all costs associated with producing a good or service, including both fixed and variable costs.

Industry Expansion

The growth or increase in size and operations of an industry due to higher demand, technological advancements, or other factors.