The Main Difference Between Shadow Prices and Lagrange Multipliers Is

question 1

Multiple Choice

The main difference between shadow prices and Lagrange multipliers is

• A) the range of RHS values over which the Lagrange multipliers or the shadow prices remain valid
• B) that shadow prices overestimate the impact of a small change in the RHS of the constraints on the objective function
• C) that shadow prices underestimate the impact of a small change in the RHS of the constraints on the objective function
• D) they are equivalent