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:

Cognitive Perspective

An approach in psychology that focuses on the way people perceive, process, and remember information.

Mental Perspective

The specific cognitive orientation or viewpoint an individual adopts when interpreting and interacting with the world around them.

Biological Perspective

An approach in psychology focusing on physical and biological bases for behavior and feelings.

Philosophical Perspective

An approach or viewpoint that is based on a system of philosophical thought, addressing fundamental questions about existence, knowledge, and ethics.