A Linear Programming Maximization Problem Has Been Solved

question 23

Multiple Choice

A linear programming maximization problem has been solved. In the optimal solution, two resources are scarce. If an added amount could be found for only one of these resources, how would the optimal solution be changed?

• A) The shadow price of the added resource will rise.
• B) The solution stays the same; the extra resource can't be used without more of the other scarce resource.
• C) The extra resource will cause the value of the objective to fall.
• D) The optimal mix will be rearranged to use the added resource, and the value of the objective function will rise.
• E) The extra resource will cause the value of the objective to rise.

Calculate and interpret average, marginal, and total costs.

Assess cost-benefit scenarios in business operations.

Apply principles of economics to personal financial decisions.

Understand the factors influencing cost-effectiveness in production and pricing strategies.

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Definitions:

Tragedy of the Commons

A situation in which individual users deplete or spoil shared resources due to collective overuse, undermining the common good.

Resource System

An organized set of resources and procedures meant to support a particular activity or process.

Intervention Research

The scientific study of the effects and outcomes of interventions or programs designed to alter the behavior or structure of a target group or system.

Bleak Outlook

A perspective or prediction that is pessimistic, lacking hope or optimism about future events or outcomes.