A transportation problem has an optimal solution when:

A) all of the improvement indices are greater than or equal to zero.
B) all demand and supply constraints are satisfied.
C) the number of filled cells is one less than the number of rows plus the number of columns.
D) all the squares are used.
E) all origin-destination combinations have been made equally low in cost.

A

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If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy

A) preemptive defense B) counteroffensive defense C) mobile defense D) flank defense E) contraction defense

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Blue Scales, Inc. entered into a contract to purchase 20,000 units of raw materials from Scorpio, Inc. If Scorpio fails to deliver on its obligations, which of the following statements is true?

A) Scorpio will have to pay the amount it has already received from Blue Scales. B) Scorpio will have to pay the profits lost by Blue Scales. C) Scorpio will have to pay whatever sum Blue Scales speculates as damages. D) Scorpio will have to pay Blue Scales the price difference in purchasing from another supplier plus court costs.

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