In a Balanced Transportation Model Where Supply Equals Demand, All

question 35

Multiple Choice

In a balanced transportation model where supply equals demand, all constraints are

• A) inequalities.
• B) equalities.
• C) A and B
• D) none of the above

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income. It is an indicator of the fixed versus variable costs in a company's operation.

Fixed Costs

Expenses that do not change with the level of output or sales within a certain range and period.

Break-Even Point

The point at which total revenues equal total costs, and the business makes neither profit nor loss.

Fixed Expenses

A repackaged definition of fixed costs emphasizing their nature as constant across different levels of output or sales.