A Company Is Developing a Linear Programming Model for Its

question 50

Multiple Choice

A company is developing a linear programming model for its aggregate production plan.If Wt = workforce size for period t,Ht = number of workers hired for period t,and Ft = number of workers fired for period t,then the company's workforce constraint for period 2 is

• A)W2 = W1 + F2 - H2
• B)W2 = H2 - F2
• C)W2 = W1 + H2 - F2
• D)W2 = H2 - F2 - W1

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Definitions:

Decreasing Returns To Scale

See Diseconomies of scale.

Economies Of Scope

Exist when the cost of producing two products jointly is less than the cost of producing those two products separately.

Economies Of Scope

Describes cost advantages that businesses experience when they increase the variety of goods or services they offer, utilizing shared operations or resources.

Economies Of Scope

Cost advantages that enterprises obtain due to a larger scope of operations, where producing a wider variety of goods or services results in lower average costs.