Section I Ture or False Ouestions (2 raints cach) Please put your answer for eac

Question

Section I Ture or False Ouestions (2 raints cach) Please put your answer for each of the questions onto the Scan Tron 1. Capital budgeting can be one of the business usages of management science. 2. Break-even analysis can determine the number of units of a product to sell or produce 3. Objective function in linear programming is numerical coefficient and constant used __4. Shadow price can be defined as the marginal value of one additional unit of resource. that will equate total revenue with total cost. in the constraint. 5. The sensitivity range for an objective function coefficient is the range of values over which the current optimal solution point will NOT remain optimal. 6. Identifying problem as solvable by linear programming is one of the steps of application of linear programming

Explanation / Answer

(1) FALSE.

Capital budgeting is the process of "making decisions of long term investments of company's capital into operation".

(2) TRUE.

The point where total revenue and total cost equates is called break-even point. The profit is zero at this point.

(3) TRUE.

The linear programming constraints constists of numerical coefficient and also constant. While solving problem there is a need of constants in every step.

(4) TRUE.

Shadow price is the real market value of the monet market fund. It is also known as marginal value.

(5) FALSE.

The sensitivity range for an objective function coefficient is the range of values over which the current optimal solution point (product m will remain optimal.

(6) TRUE.

The first step in the application of linear programming is Identifying whether the problem can be solved by linear programming. The next step includes the formulation of mathematical model and later on solving the model. Last step is the implementation.

Hope this will help :)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.