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:

Pounds

The unit of currency used in the United Kingdom, also known as the British pound sterling (GBP).

Marking-to-Market

An accounting practice where assets and liabilities are valued according to current market prices, rather than book or historical prices.

Troy Ounce

A unit of measure used for precious metals, slightly heavier than an avoirdupois ounce, equal to approximately 31.1035 grams.

Silver Contract

A legally binding agreement for the purchase or sale of silver in the future at an agreed-upon price.