Suppose That the Shadow Price for Assembly Time Is $5/hour

question 26

Multiple Choice

Suppose that the shadow price for assembly time is $5/hour. If all assembly hours were used under the initial LP solution and workers normally make $4/hour but can work overtime for $6/hour, what should management do?

• A) do not change available hours for assembly time
• B) decrease available hours for assembly time
• C) increase available hours for assembly time
• D) not enough information
• E) Either A or C will result in larger profits than B.

---

Definitions:

Home Tab

The primary tab in many software applications, offering quick access to the most commonly used commands and features.

Clear Formats

The action of removing all formatting from a selected portion of text, reverting it to default or previously defined style settings.

Default Font

The pre-selected font setting that a software application uses for its text, unless changed by the user.

Font

A specific design of text characters, including style, size, and spacing, used to display text on various media.