If X = 0 in the primal solution:
A)the marginal value of inputs just equals the marginal value of output in X production.
B)the marginal value of inputs exceeds the marginal value of output in X production.
C)LX = 0 in the dual solution.
D)LX

Question

If X = 0 in the primal solution:
A)the marginal value of inputs just equals the marginal value of output in X production.
B)the marginal value of inputs exceeds the marginal value of output in X production.
C)LX = 0 in the dual solution.
D)LX < 0 in the dual solution.

Quizplus · Accepted Answer

When X = 0 in the primal solution, it indicates that producing X is not optimal given the current constraints and prices. This happens when the marginal value of inputs (the cost to produce one more unit of X) exceeds the marginal value of output (the revenue or benefit from producing one more unit of X), making production unprofitable or less profitable compared to other uses of the resources.

If X = 0 in the Primal Solution