A Shadow Price Reflects Which of the Following in a Maximization

question 69

Multiple Choice

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

• A) The marginal cost of adding additional resources.
• B) The marginal gain in the objective value realized by adding one unit of a resource.
• C) The marginal loss in the objective value realized by adding one unit of a resource.
• D) The marginal gain in the objective value realized by subtracting one unit of a resource.
• E) None of the choices is correct.

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Definitions:

Apparent Power

The total power in an AC circuit, both used and unused, measured in Volt-Amperes (VA) and combining both active and reactive power components.

Parallel Circuit

A circuit in which components are connected across common points or junctions, providing multiple paths for current.

Inductive Reactance

The opposition to the change in current flow in an AC circuit, caused by the inductance of the circuit elements.

Resistor Current

The flow of electric charge through a resistor, influenced by the voltage across the resistor and its resistance, according to Ohm's law.