LP Basics
Indicate whether each of the following statements is true or false and explain why.
A. Constant returns to scale and constant input prices are the only requirements for a total cost function to be linear.
B. Changing input prices will always alter the slope of a given isocost line.
C. In profit-maximization linear programming problems, negative values for slack variables imply that the amount of an input resource employed exceeds the amount available.
D. Equal distances along a given process ray indicate equal output quantities.
E. Nonbinding constraints are constraints that intersect at the optimum solution.