Question 1

When output is maximized subject to a labour constraint, the shadow price of labour is the:

Accepted Answer

A) marginal product of labour. 
B) marginal revenue product of labour. 
C) market price of labour. 
D) amount paid for labour. 
A) marginal product of labour. 
B) marginal revenue product of labour. 
C) market price of labour. 
D) amount paid for labour. A

Question 2

When the objective function coincides with a single point in the feasible space:

Accepted Answer

A) an optimal solution cannot be determined. 
B) there is only one optimal solution. 
C) there are many possible optimal solutions. 
D) an optimal solution does not exist. 
A) an optimal solution cannot be determined. 
B) there is only one optimal solution. 
C) there are many possible optimal solutions. 
D) an optimal solution does not exist. B

Question 3

A positive value for the labour input slack variable implies:

Accepted Answer

A) no excess capacity. 
B) use of more labour resources than are available. 
C) use of less labour resources than are available. 
D) expansion is warranted provided the slack variable value is less than the market wage rate. 
A) no excess capacity. 
B) use of more labour resources than are available. 
C) use of less labour resources than are available. 
D) expansion is warranted provided the slack variable value is less than the market wage rate. A

Question 4

If the primal objective function is to maximize profit subject to input constraints, the dual objective function is to minimize:

Accepted Answer

A) total cost. 
B) explicit costs. 
C) the quantity of output. 
D) the value of inputs employed. 
A) total cost. 
B) explicit costs. 
C) the quantity of output. 
D) the value of inputs employed.

Question 5

If QA > 0, then the marginal value of output:

Accepted Answer

A) equals the marginal value of inputs employed. 
B) is less than the marginal value of inputs employed. 
C) exceeds the marginal value of inputs employed. 
D) none of these. 
A) equals the marginal value of inputs employed. 
B) is less than the marginal value of inputs employed. 
C) exceeds the marginal value of inputs employed. 
D) none of these.

Question 6

If the labour slack variable > 0, then:

Accepted Answer

A) excess labour capacity exists. 
B) the shadow price on labour is > 0. 
C) the shadow price on labour is  0. 
A) excess labour capacity exists. 
B) the shadow price on labour is > 0. 
C) the shadow price on labour is  0.

Question 7

When the primal LP problem is to minimize cost subject to various output constraints, the shadow prices in the dual constraints:

Accepted Answer

A) equal the marginal revenue product of each input. 
B) are positive for inputs with excess capacity. 
C) equals zero for fully utilized inputs. 
D) none of these. 
A) equal the marginal revenue product of each input. 
B) are positive for inputs with excess capacity. 
C) equals zero for fully utilized inputs. 
D) none of these.

Question 8

When an LP objective function is to minimize cost:

Accepted Answer

A) constraint conditions must be of the variety. 
B) constraint conditions must be of the variety 
C) all costs must be variable. 
D) the total cost function must not be linear. 
A) constraint conditions must be of the variety. 
B) constraint conditions must be of the variety 
C) all costs must be variable. 
D) the total cost function must not be linear.

Question 9

The profit function = aQX + bQY, can be written as QY = /b - a/bQY where a and b are the profit contributions of products X and Y, respectively.If both profit contributions increase by a fixed percentage, isoprofit line:

Accepted Answer

A) slope decreases. 
B) slope is unaffected. 
C) slope increases. 
D) none of these. 
A) slope decreases. 
B) slope is unaffected. 
C) slope increases. 
D) none of these.

Question 10

If X = 0 in the primal solution:

Accepted Answer

A) the marginal value of inputs just equals the marginal value of output in X production. 
B) the marginal value of inputs exceeds the marginal value of output in X production. 
C) LX = 0 in the dual solution. 
D) LX < 0 in the dual solution. 
A) the marginal value of inputs just equals the marginal value of output in X production. 
B) the marginal value of inputs exceeds the marginal value of output in X production. 
C) LX = 0 in the dual solution. 
D) LX < 0 in the dual solution.

When output is maximized subject to a labour constraint, the shadow price of labour is the:

When the objective function coincides with a single point in the feasible space:

A positive value for the labour input slack variable implies:

If the primal objective function is to maximize profit subject to input constraints, the dual objective function is to minimize:

If QA > 0, then the marginal value of output:

If the labour slack variable > 0, then:

When the primal LP problem is to minimize cost subject to various output constraints, the shadow prices in the dual constraints:

When an LP objective function is to minimize cost:

The profit function = aQX + bQY, can be written as QY = /b - a/bQY where a and b are the profit contributions of products X and Y, respectively.If both profit contributions increase by a fixed percentage, isoprofit line:

If X = 0 in the primal solution:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

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Exam 9: Linear Programming

When output is maximized subject to a labour constraint, the shadow price of labour is the:

When the objective function coincides with a single point in the feasible space:

A positive value for the labour input slack variable implies:

If the primal objective function is to maximize profit subject to input constraints, the dual objective function is to minimize:

If QA > 0, then the marginal value of output:

If the labour slack variable > 0, then:

When the primal LP problem is to minimize cost subject to various output constraints, the shadow prices in the dual constraints:

When an LP objective function is to minimize cost:

The profit function = aQX + bQY, can be written as QY = /b - a/bQY where a and b are the profit contributions of products X and Y, respectively.If both profit contributions increase by a fixed percentage, isoprofit line:

If X = 0 in the primal solution:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters