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Management · Q53

Operations Research or Qualitative Approach

Graduate and Post Graduate · Management · question 53

Q53

If an opportunity cost value is used for an unused cell to test optimality, it should be.

A.
Equal to zero
B.
Most negative number
Answer
C.
Most positive number
D.
Any value

Answer: Option B

Solution

Answer: Option B
Solution:
If an opportunity cost value is used for an unused cell to test optimality, it should be most negative number. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.