What Is the Shadow Price

question 41

Multiple Choice

What is the shadow price?

• A)the price that indicates the amount by which throughput will increase for one unit of unconstrained resource
• B)the price paid on the black market for one unit of scarce resource
• C)the price paid for a scarce resource from an external provider
• D)the price that indicates the amount by which contribution margin will increase for one unit of scarce resource

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Definitions:

Achieving Legitimacy

The process by which an entity gains acceptance and rightfulness in the eyes of its stakeholders, often through meeting certain standards or norms.

Good Deeds

Actions performed with the intention of benefiting others without expecting anything in return.

Establishing Legitimacy

The process through which an entity or individual gains acceptance, credibility, and recognition by adhering to societal norms, standards, or laws.

Stakeholders

Individuals, groups, or organizations that are affected by, or have an interest in, the operations and outcomes of a particular project, program, or policy.