In Solving the NLP Problem, Solver Produced a Message "Solver

question 56

Multiple Choice

In solving the NLP problem, Solver produced a message "Solver has converged to the current solution. All constraints are satisfied." This means that:

• A) Solver found a local optimal solution
• B) Solver found a global optimal solution
• C) the objective function changed very slowly for the last few iterations
• D) Your model is degenerate

Identify conditions under which a firm experiences economies of scale, constant returns to scale, and diseconomies of scale based on total cost patterns.

Comprehend the difference between rising, falling, and constant long-run average total costs.

Recognize the role of specialization in achieving economies of scale.

Understand the difference between marginal cost, average total cost, and marginal product in the context of production and cost functions.

---

Definitions:

Mutually Beneficial

A situation or transaction where all parties involved gain or benefit from the arrangement.

Terms of Trade

The ratio of export prices to import prices. It shows how much import goods a country can buy for each unit of export goods it sells.

Production Possibilities

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Economic Efficiency

Economic efficiency occurs when resources are optimally allocated to serve the needs of a society without any waste.