Constrained optimization refers to the fact that
A) the firm need to impose restrictions on itself for sustainable growth.
B) the resources the firm has are limited.
C) the objectives the firm has are limited.
D) the firm has only limited demand and should be limit production.

Question

Quizplus · Accepted Answer

Constrained optimization in economics and operations research typically refers to finding the best solution (e.g., maximum profit, minimum cost) under a given set of constraints (e.g., budget, resources, technology). Choice B correctly identifies that constrained optimization involves dealing with limited resources, which is a fundamental aspect of most optimization problems.

Constrained Optimization Refers to the Fact That