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.

Question

Quizplus · Accepted Answer

The given statement only tells us that the optimal solution falls between the upper and lower constraints for purse production and that none of the items with maximum demands are produced to their limit. It doesn't provide us any information regarding shadow prices, profitability, or cost-effectiveness of different products. Hence, we cannot draw any conclusions from this statement.

In the Optimal Solution to This Scenario, Purse Production Falls