A Nonlinear Programming Problem May Have

question 10

Multiple Choice

A nonlinear programming problem may have:
I. Activities with increasing marginal returns.
II. Activities with decreasing marginal returns.
III. Nonlinear functional constraints.

• A) I only
• B) II only
• C) III only
• D) I, II, and III
• E) II and III only

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Definitions:

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at that price.

Substitute Good

A product or service that a consumer can use in place of another to satisfy the same need or desire.

LRMC

Long-Run Marginal Cost, which refers to the change in total production costs that comes from producing one additional unit of a good or service when all inputs are variable.

SRMC

Short-Run Marginal Cost (SRMC) is the cost to produce one additional unit of output when some inputs are fixed.