A Shadow Price Reflects Which of the Following in a Maximization

question 84

Multiple Choice

A shadow price reflects which of the following in a maximization problem?

• A) the marginal gain in the objective that would be realized by adding one unit of a resource
• B) the marginal gain in the objective that would be realized by subtracting one unit of a resource
• C) the marginal cost of adding additional resources
• D) the marginal gain of selling one more unit

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Definitions:

Misconduct

Inappropriate or unlawful behavior by a person in a professional or official capacity.

Agents

Individuals or entities authorized to act on behalf of others, often in business or legal matters.

Benefit Corporation

A type of for-profit corporation, available by statute in a number of states, that seeks to have a material positive impact on society and the environment.

Decision-making Process

The series of steps or actions taken to make choices or judgments among alternative courses of action.