Question

1- An unbounded problem is one for which ________. remains feasible

A. the objective is maximized or minimized by more than one combination of decision variables

B. there is no solution that simultaneously satisfies all the constraints

C. the objective can be increased or decreased to infinity or negative infinity while the solution

D. there is exactly one solution that will result in the maximum or minimum objective

2- If a model has alternative optimal solutions, ________.

A. the objective is maximized or minimized by more than one combination of decision variables

B. there is no solution that simultaneously satisfies all the constraints

C. the objective can be increased or decreased to infinity or negative infinity

D. there is exactly one solution that will result in the maximum or minimum objective

3- The ________ indicates how much the value of the objective function will change as the right-hand side of a constraint is increased by 1.

A. objective coefficient

B. shadow price

C. binding constraint

D. reduced cost

Answer 1

1. Option C. the objective can be increased or decreased to infinity or negative infinity while the solution

2. Option A. the objective is maximized or minimized by more than one combination of decision variables

3. Option B. Shadow price

Shadow price is that change which takes place in the difference between the actual value and optimized value of a objective function. Which occurs when RHS of the constraint is increased by One. For every marginal change in RHS, there's a change in value of objective function which is indicated by this concept.