Variable Cells Constraints If the Coefficient of Activity 2 in the Objective Function

question 65

Multiple Choice

Variable cells
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{c}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{B} \$ 6 & \text { Activity 1 } & 0 & 425 & 500 & 1 \mathrm{E}+30 & 425 \\\hline \$ \mathrm{C} \$ 6 & \text { Activity 2 } & 27.5 & 0.0 & 300 & 500 & 300 \\\hline \$ \mathrm{D} \$ & \text { Activity 3 } & 0 & 250 & 400 & 1 \mathrm{E}+30 & 250 \\\hline\end{array}$
Constraints
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{E} \$ 2 & \text { Benefit A } & 110 & 0 & 60 & 50 & 1 \mathrm{E}+3 \mathrm{C} \\\hline \$ \mathrm{E} \$ 3 & \text { Benefit B } & 110 & 75 & 110 & 1 \mathrm{E}+30 & 46 \\\hline \$\mathrm{E} \$ 4 & \text { Benefit C } & 137.5 & 0 & 80 & 57.5 & 1 \mathrm{E}+30 \\\hline\end{array}$
If the coefficient of Activity 2 in the objective function changes to $100, then:

• A) the original solution remains optimal.
• B) the problem must be resolved to find the optimal solution.
• C) the shadow price is valid.
• D) the shadow price is not valid.
• E) None of the choices is correct.

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Defenses

Legal strategies and arguments used in court to justify or excuse an individual's actions or to challenge the validity of a lawsuit.

Securities Act

A federal piece of legislation enacted in 1933 that regulates the offer and sale of securities to protect investors from fraud.

Controlling Person

An individual or entity that has the power to direct or influence the management and policies of a company, typically through ownership of a significant portion of voting shares.