The Shadow Price of a Slack Variable in a Linear

question 17

Multiple Choice

The shadow price of a slack variable in a linear programming solution that maximises the total contribution margin reflects

• A) The amount of excess capacity available for the associated constraint
• B) The decrease in contribution margin that occurs if a unit of the associated product is produced
• C) The contribution margin returned by the firm's profitable product
• D) The increase in contribution margin that would occur if another unit of the constrained resource were available

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Definitions:

Operant Conditioning

A learning process in which the consequences of an action affect the likelihood of the action being performed again, involving reinforcement and punishment.

Classical Conditioning

A teaching method in which a response originally triggered by a second stimulus is ultimately triggered by the first stimulus after the two stimuli have been repeatedly associated.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent only when there is an incentive to demonstrate it.

Classical Conditioning

Classical conditioning is a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.