The Shadow Price in a Linear Programming Model Is

question 85

Multiple Choice

The shadow price in a linear programming model is:

• A) Interesting from a mathematical or economic theory standpoint, but not generally useful from an accounting standpoint.
• B) Equal to the current market price for an additional unit of the related resource.
• C) The maximum price a rational decision-maker would be willing to pay for an additional unit of the scarce resource.
• D) Greater than the market price for the related resource.
• E) Zero for a binding constraint.

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Definitions:

Tests

Procedures or methods used to assess the presence, quality, or truth of something, often referring to examinations measuring knowledge, performance, or physical condition.

Pre-Socratic Materialists

Early Greek philosophers who believed that the physical world is composed entirely of matter without the influence of supernatural forces.

Ultimate Reality

A concept in various philosophical and religious traditions referring to the most fundamental nature of existence, beyond which no further causal explanation can be sought.

Anaximander

An early Pre-Socratic philosopher from Miletus in Ionia, notable for his work in cosmology, geography, and biology.