Compared to Blending and Product Mix Problems, Transportation Problems Are

question 1

Multiple Choice

Compared to blending and product mix problems, transportation problems are unique because

• A) they maximize profit.
• B) the constraints are all equality constraints with no "≤" or "≥" constraints.
• C) they contain fewer variables.
• D) the solution values are always integers.

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Definitions:

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a firm to adjust to changes in market demand or supply.

Long-Run Industry

A period in which all factors of production and costs can be variable, allowing for adjustment to changes in market conditions.

Zero-Profit Equilibrium

A situation where a firm's total revenues exactly equal its total costs, resulting in no economic profit.

Entry

The act of entering or moving into a market or area of business to start operations or activities.