The Absolute Value of the Shadow Price Indicates the Amount

question 68

Multiple Choice

The absolute value of the shadow price indicates the amount by which the objective function will be

• A) improved if the corresponding constraint is loosened.
• B) improved if the corresponding constraint is tightened.
• C) made worse if the corresponding constraint is loosened.
• D) improved if the corresponding constraint is unchanged.

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Definitions:

Formal Agreement

A legally binding contract or arrangement that specifies the duties and rights of the parties involved.

Strategies Implemented

refers to the application or execution of a plan or method aimed at achieving specific goals or outcomes.

Practical Arrangements

Concrete preparations or organizational plans made to facilitate an event, activity, or project.

Rapport

A positive relationship characterized by mutual trust, understanding, and empathy.