Exhibit 7.2 The Following Questions Are Based on the Problem Below

question 64

Multiple Choice

Exhibit 7.2
The following questions are based on the problem below.
An investor has $150,000 to invest in investments A and B. Investment A requires a $10,000 minimum investment, pays a return of 12% and has a risk factor of .50. Investment B requires a $15,000 minimum investment, pays a return of 10% and has a risk factor of .20. The investor wants to maximize the return while minimizing the risk of the portfolio. The following multi-objective linear programming (MOLP) has been solved in Excel.
-Refer to Exhibit 7.2. What Analytic Solver Platform constraint involves cells $B$6:$C$6?

• A) $B$6:$C$6=$B$7:$C$7
• B) $B$6:$C$6≥$B$7:$C$7
• C) $B$6:$C$6≤$B$7:$C$7
• D) $B$6:$C$6=$D$7

---

Definitions:

Purely Competitive

A market structure characterized by many firms selling identical products, where no single firm can influence the market price.

Monopsonist

A monopsonist is a market condition where there is only one buyer in a market, giving this buyer significant control over the price and terms of purchase.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across an economy or market.

Marginal Revenue Product

The additional revenue a firm earns by employing one more unit of input, such as labor or capital.