A Shadow Price Indicates How Much the Optimal Value of the Objective

question 32

True/False

A shadow price indicates how much the optimal value of the objective function will increase per unit increase in the right-hand side of a constraint.

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Definitions:

Unforeseen Difficulties

Challenges or problems that were not anticipated or expected at the outset of a project or agreement.

Preexisting Duty Rule

A legal doctrine stating that a promise to perform something the promisor is already legally obligated to do is not consideration for a new contract.

Adequacy of Consideration

Pertains to the fairness of the value exchanged in a contractual agreement, often examined in legal disputes over contract validity.

Legally Sufficient

Having the requisite form, substance, and detail to comply with the law and withstand legal scrutiny.