A Shadow Price (Or Dual Value) Reflects Which of the Following

question 51

Multiple Choice

A shadow price (or dual value) reflects which of the following in a maximization problem?

• A) the marginal gain in the objective realized by subtracting one unit of a resource
• B) the market price that must be paid to obtain additional resources
• C) the increase in profit that would accompany one added unit of a scarce resource
• D) the reduction in cost that would accompany a one unit decrease in the resource
• E) the cost level that must be achieved for profitability

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Definitions:

Interquartile Range

A measure of variability, based on dividing a data set into quartiles, that describes the middle 50% of the distribution.

Data Set

An aggregation of interconnected data sets, which are made up of distinct pieces, yet can be operated on as a single entity by a computer.

Positively Skewed

Positively Skewed, also known as right-skewed, describes a distribution where the tail on the right side of the histogram is longer or fatter than the left side, indicating that the mean and median are greater than the mode.

Negatively Skewed

A description of a distribution of data where the tail on the left side of the distribution is longer or fatter than the right side.