Consider the Production Problem: Find the Shadow Price for Resource

question 187

Multiple Choice

Consider the production problem: Find the shadow price for resource 2. Identify the binding and nonbinding constraints.

• A) The shadow price for resource 2 is $60 .Constraints 1, 2 and 3 are binding constraints.
• B) The shadow price for resource 2 is $0.1 .Constraints 1 and 2 are binding constraints and constraint 3 is nonbinding.
• C) The shadow price for resource 2 is $60 .Constraints 1 and 3 are nonbinding constraints and constraint 2 is binding.
• D) The shadow price for resource 2 is $0.1 .Constraint 1 is binding constraint and constraints 2 and 3 are nonbinding.

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Definitions:

Comparison Other

A reference point in social comparison theory, where individuals evaluate themselves in relation to others to assess accomplishments, abilities, or status.

Self-image

An individual’s conception of themselves, which can include perceptions of their abilities, appearance, and personality.

Social Sources

The origins from which individuals or organizations obtain social support, norms, or influences.

Distributive Justice Principle

A concept in social psychology concerning the fair allocation of resources among diverse members of a community.