A Shadow Price (Or Dual Value) Reflects Which of the Following

question 51

Multiple Choice

A shadow price (or dual value) reflects which of the following in a maximization problem?

• A) the marginal gain in the objective realized by subtracting one unit of a resource
• B) the market price that must be paid to obtain additional resources
• C) the increase in profit that would accompany one added unit of a scarce resource
• D) the reduction in cost that would accompany a one unit decrease in the resource
• E) the cost level that must be achieved for profitability

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Definitions:

Individual Reward Systems

Compensation or incentivization methods that are tailored to the achievements or performance of a single employee.

Attribution Theory

A psychological theory proposing how individuals interpret events and how this relates to their thinking and behavior.

Informational Cues

Elements in the environment or communication that provide data or hints to help individuals understand situations, make decisions, or solve problems.

External Attribution

The process of inferring that a person's behavior is due to situational factors, not to internal characteristics.