The Shadow Price of a Slack Variable in a Linear

question 115

Multiple Choice

The shadow price of a slack variable in a linear programming solution that maximizes 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

---

Definitions:

Coombs' Model

A crisis communication framework developed by Timothy Coombs to help organizations effectively respond to and manage crises.

Crisis Communication

The specialized field of public relations focused on protecting and defending an organization's reputation during and after a crisis.

Damage Containment

Strategies or actions taken to minimize or limit the negative impact of a detrimental event or situation.

Benoit's Theory

A theory of image restoration that outlines strategies individuals or organizations can use to repair their reputation following a crisis.