The Shadow Price of a Slack Variable in a Linear

question 115

Multiple Choice

The shadow price of a slack variable in a linear programming solution that maximizes the total contribution margin reflects:

• A) The amount of excess capacity available for the associated constraint
• B) The decrease in contribution margin that occurs if a unit of the associated product is produced
• C) The contribution margin returned by the firm's profitable product
• D) The increase in contribution margin that would occur if another unit of the constrained resource were available

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Definitions:

Political Party Machines

Political entities in the 19th and early 20th centuries that controlled party nominations and patronage, often through corruption and favoritism, to maintain power.

Spoils System

The term meaning the filling of federal government jobs with persons loyal to the party of the president; originated in Andrew Jackson’s first term.

Whigs

A political faction and then a formal party in the parliaments of England, Great Britain, Ireland, and the United Kingdom, that was influential from the 1680s to the 1850s, advocating for parliamentary supremacy and opposed to the royal prerogative.

Spoils System

A practice where political party leaders give government jobs to their supporters as a reward for their assistance in achieving victory.