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C Co uses material B, which has a current market price of $0

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  • [单选题]C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:

  • A. (i) Contribution will be increased by $2 for each additional kg of material B purchased at the current market price
    B. (ii) The maximum price which should be paid for an additional kg of material B is $2
    C. (iii) Contribution will be increased by $1·20 for each additional kg of material B purchased at the current market price
    D. (iv) The maximum price which should be paid for an additional kg of material B is $2·80
    E. Which of the above statements is/are correct?
    F. (ii) only
    G. (ii) and (iii)
    H. (i) only
    I. (i) and (iv)

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