Consider the Transportation Problem and Its Optimal Solution in the Tables

question 56

Multiple Choice

Consider the transportation problem and its optimal solution in the tables below.What is total shipping cost?

• A)0
• B)$169
• C)300 units
• D)$2,100
• E)$3,140

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Definitions:

Marginal Revenue

The boost in income derived from the sale of an extra unit of a product or service.

Marginal Cost

The additional cost incurred in the production of one extra unit of a good or service.

Marginal Profit

The additional profit gained from producing or selling one more unit of a good or service.

MR < MC

A condition where marginal revenue is less than marginal cost, suggesting that a firm should reduce its output to maximize profit.