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:

Moral Values

Principles or standards of behavior that dictate what is considered right or wrong, guiding ethical conduct.

Ingroup Member

An individual who belongs to and identifies with a specific social group, sharing common interests, values, or characteristics with other members.

Pluralistic Ignorance

A situation where a majority of group members privately reject a norm, but incorrectly assume that most others accept it, leading to a disconnect between beliefs and behaviors.

Social Responsibility Norm

A societal rule that people should help those who need assistance, without regard to future exchanges.