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In the Optimal Solution to This Scenario, Purse Production Falls

Question 75

Multiple Choice

In the optimal solution to this scenario, purse production falls in between the upper and lower constraints.None of the items with maximum demands are produced to their limit.Which of these statements is valid?


A) The shadow price for purses must be zero.
B) Purses are more profitable than jackets.
C) It is more cost-effective to produce and sell leather pants than leather purses.
D) Nothing can be concluded from this statement.

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