A Firm Can Profitably Introduce a New Activity If and Only

Multiple Choice

A firm can profitably introduce a new activity if and only if:

A) the activity's direct benefit exceeds its opportunity cost.
B) the activity's direct benefit equals its opportunity cost.
C) all the constraints become nonbinding.
D) the slope of the resource constraint equals the slope of the objective function.
E) the shadow price of any one of the resources becomes zero.