The Following Is a Graph of a Linear Programming Problem

question 22

Multiple Choice

The following is a graph of a linear programming problem. The feasible solution space is shaded, and the optimal solution is at the point labeled Z*.

-The constraint AJ

• A) is a binding constraint.
• B) has no surplus.
• C) does not contain feasible points.
• D) contains the optimal solution.

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Definitions:

Excess Capacity

Excess capacity refers to a situation where a company is operating below its maximum output level, indicating that it can produce more with the current resources if there is higher demand.

Expansionary Fiscal Policy

To fight recessions, the federal government lowers taxes and/or raises spending.

Government Spending

Expenditures made by the government of a country on collective needs and wants such as infrastructure, public safety, education, and healthcare.

Public Debt

Money that is owed by a government to creditors within the country or externally, arising from borrowing to finance expenditures exceeding tax revenues.