A Graphical Representation of a Linear Program Is Shown Below

question 55

Short Answer

A graphical representation of a linear program is shown below. The shaded area represents the feasible region, and the dashed line in the middle is the slope of the objective function.
If this is a minimization, which extreme point is the optimal solution?

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Definitions:

Deadweight Losses

Economic inefficiencies that occur when the allocation of resources is not optimal, typically due to market imbalances or government interventions.

Tax

A compulsory financial charge or other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable, leading to misallocation of resources.

Tax Laws

Regulations governing how taxes are assessed, collected, and managed by government entities, including income, corporate, sales, and property taxes.