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:

Complementary Factors

Complementary factors in economics refer to goods or inputs that are used together in production or consumption, where an increase in demand for one leads to an increase in demand for the other.

White-collar Employment

Jobs that typically involve professional, managerial, or administrative work, often in an office setting, as opposed to blue-collar jobs that involve manual labor.

Substitution Effect

The change in demand for a good due to a change in its price, leading consumers to substitute it with another product.

Output Effect

When the price of any resource rises, the cost of production rises, which, in turn, lowers the supply of the final product. When supply falls, price rises, consequently reducing output.