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4. Which of the following statements best describes shadow prices? 3 2) Prices at which profits is maximized as one constraint increases or decreases by

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4. Which of the following statements best describes shadow prices? 3 2) Prices at which profits is maximized as one constraint increases or decreases by 1 unit. bj Prices at which cost is maximized as one constraint increases or decreases by 1 unit () Prices customers are willing to pay for a one unit increase in a constraint. d) Prices at which sales generate profits.| 5. Ace Company uses just-in-time inventory methods to manage its inventories. Which of the following statements is incomect concerning this company? a) Inventory costs will fluctuate greatly from month to month because of variability in sales. b) There will typically be very low levels of inventories period to period () Inventory cost will be dealt with more effectively. d) None of the above. 6. Regarding the accrual accounting rate of return (AARK) method, which of the following is true? a) The AARR method uses a predetermined hurdle rate to determine the present value of the relevant cash flows b) The AARR method considers all returns over the life of the project. c) The AARR method is based on income before taxes, depreciation, and amortization divided by the net initial investment. d) The AARR method is equal to the internal rate of return

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