An Objective Function Reflects the Relevant Cost of Labor Hours

question 8

Multiple Choice

An objective function reflects the relevant cost of labor hours used in production rather than treating them as a sunk cost. The correct interpretation of the dual price associated with the labor hours constraint is

• A) the maximum premium (say for overtime) over the normal price that the company would be willing to pay.
• B) the upper limit on the total hourly wage the company would pay.
• C) the reduction in hours that could be sustained before the solution would change.
• D) the number of hours by which the right-hand side can change before there is a change in the solution point.

---

Definitions:

Modelling

The process of learning behaviors by observing and imitating others.

Observing

Observing involves carefully watching someone or something and noting information derived from what is seen, often an essential method for collecting data in scientific research.

Skill Acquisition

The process of learning or developing new abilities and competencies through practice and experience.

Social Skills Training

A form of behavior therapy used by teachers, therapists, and trainers to help individuals with difficulties in social interactions learn and practice appropriate social behaviors.