The Shadow Price

question 91

Multiple Choice

The shadow price

• A) indicates the amount by which throughput will increase for one unit of unconstrained resource.
• B) is the price paid on the black market for one unit of scarce resource.
• C) is the price paid at night for a scarce resource.
• D) indicates the amount by which contribution margin will increase for one unit of scarce resource.

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Definitions:

Lack

The absence or deficiency of something desirable or necessary.

Apart

Separated by a distance or gap, or considered as separate or distinct entities.

Toward

A direction or orientation leading closer to a specific location or object.

Near

Located at a short distance in space or time.