A Section of Output from the Management Scientist Is Shown

question 24

Multiple Choice

A section of output from The Management Scientist is shown here. What will happen to the solution if the objective function coefficient for variable 1 decreases by 20?
$$\begin{array} { l l l l } \text { Variable } & \text { Lower Limit } & \text { Current Value } & \text { Upper Limit } \\\hline 1 & 60 & 100 & 120\end{array}$$

• A)Nothing.The values of the decision variables,the dual prices,and the objective function will all remain the same.
• B)The value of the objective function will change,but the values of the decision variables and the dual prices will remain the same.
• C)The same decision variables will be positive,but their values,the objective function value,and the dual prices will change.
• D)The problem will need to be resolved to find the new optimal solution and dual price.

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Definitions:

Corporation

A legal entity separate from its owners, with rights to own assets, incur liabilities, hire employees, enter contracts, and provide protection for its shareholders.

Sole Proprietorship

A type of business ownership where a single individual owns, manages, and is responsible for all aspects of the business.

Limited Liability Corporation

An organizational form that integrates the single-level taxation characteristic of partnerships and sole proprietorships with the protective limited liability feature of corporations.

Debt Financing

Acquiring funds for business activities by borrowing money, typically through loans or by issuing bonds, that must be repaid with interest.