The Shadow Price of Nonbinding Constraints

question 60

Multiple Choice

The shadow price of nonbinding constraints

• A) will always be zero.
• B) always take positive values.
• C) can never be equal to zero.
• D) is no longer valid if the right-hand side of the constraint remains the same.

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Definitions:

Small Business Administration (SBA)

A U.S. government agency that provides support to entrepreneurs and small businesses, including loans and grants.

Loan Guarantees

Agreements in which a guarantor, usually a government or financial institution, agrees to pay back a loan if the borrower defaults.

Business Incubators

Organizations designed to accelerate the growth and success of startup and early-stage companies by providing resources such as space, capital, coaching, and networking connections.

Loans

A sum of money that is borrowed and is expected to be paid back with interest.