A Shadow Price Reflects Which of the Following in a Maximization

question 38

Multiple Choice

A shadow price reflects which of the following in a maximization problem?

• A)marginal cost of adding additional resources
• B)marginal gain in the objective that would be realized by adding one unit of a resource
• C)net gain in the objective that would be realized by increasing an objective function coefficient
• D)marginal gain in the objective that would be realized by subtracting one unit of a resource
• E)expected value of perfect information

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Definitions:

Life Support

Medical equipment that sustains, extends, or replaces vital bodily functions, often used in critically ill or comatose patients.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.

Thalamus

A crucial part of the brain that acts as a relay station, processing and transmitting sensory information to the appropriate areas of the cortex.

Neural Impulses

Electrical signals transmitted along the neurons, facilitating communication throughout the nervous system.