A Transportation Problem Has Improvement Indices of 5,4,0,and -3

question 39

Multiple Choice

A transportation problem has improvement indices of 5,4,0,and -3.Which of the following is always true?

• A)The transportation model is at its ideal solution.
• B)The transportation model is at an infeasible solution.
• C)The total cost saved by changing one unit on the route with an improvement index of 5 would be $5.
• D)The transportation matrix has four empty squares.
• E)Both B and D

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Definitions:

Allocative Efficiency

Occurs when no resources are wasted; it is not possible to make any person better off without making someone else worse off.

Economic Problem

The challenge of limited resources to meet unlimited wants and needs of society.

Capital Goods

Long-lasting goods purchased or used by businesses to produce goods or services and not intended for final consumption.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.