In Linear Programming We Can Use the Shadow Price to Calculate

question 55

Multiple Choice

In linear programming we can use the shadow price to calculate increases or decreases in:

• A) binding constraints
• B) nonbinding constraints
• C) values of the decision variables
• D) the value of the objective function

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Definitions:

Sales Tax

A sales tax is a government-imposed levy on the sale of goods and services, which is usually a percentage of the retail price.

Freight Charges

Costs associated with the transportation of goods from one location to another, typically paid by the shipper or receiver.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over its expected useful life.

Salvage Value

The estimated residual value of an asset after its useful life has ended and it can no longer be used for its originally intended purpose.