A company must invest in project 1 in order to invest in project 2. Which of the following constraints ensures that project 1 will be chosen if project 2 is invested in? A) X₁ + X₂ = 0 B) X₁ + X₂ = 1 C) X₁ − X₂ ≥ 0 D) X₁ − X₂ ≤ 0

Question

Quizplus · Accepted Answer

The constraint "X₁ − X₂ ≥ 0" ensures that the investment in project 1 (represented by the first term) must be equal to or greater than the investment in project 2 (represented by the second term). This effectively means project 1 must be chosen if project 2 is chosen, as the investment in project 1 cannot be less than the investment in project 2.

A Company Must Invest in Project 1 in Order to Invest