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:

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Presidential Profits

Earnings or financial gains made by a person holding the office of the president, potentially from various sources, including investments, salaries, or other income.

Public Announcement

An official notification or disclosure made to the general public, often regarding significant changes, decisions, or events related to a company or organization.

Tipper

An insider who gives inside information to someone.