The Lagrange Multiplier Is

question 12

Multiple Choice

The Lagrange multiplier is

• A) the shadow price for the constraint coefficients.
• B) valid over a range of changes in the RHS.
• C) the rate of change in the objective value as the RHS of the constraint increases.
• D) the minimum threshold for decision variables to enter the solution.

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Definitions:

Per Capita

A statistical measure that divides an aggregate by the number of individuals in the population.

Real Income

The purchasing power of income, after adjusting for inflation, indicating the actual quantity of goods or services that can be bought.

Middle-Income

Middle-Income refers to the socioeconomic class of individuals or families whose earnings fall between the upper and lower income brackets.

World Bank

A global financial organization that offers loans and grants to less wealthy nations' governments to support capital projects.