The Shadow Price of a Nonbinding Constraint Is

question 40

Multiple Choice

The shadow price of a nonbinding constraint is:

• A) negative in value
• B) zero.
• C) a value between zero and one.
• D) proportionate to the amount of profit
• E) equal to the profit per unit of the decision variable concerned.

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Definitions:

Obligation to Mitigate

The duty of a party who has suffered damages to take reasonable action to minimize the amount of the loss.

Torts Committed

Acts or omissions that cause harm or loss, leading to civil legal liability under tort law.

Fiduciary Duty

An obligation wherein an individual must act in the best interest of another person or entity, prioritizing their benefits over their own.

Serious Misconduct

Serious misconduct is a severe behavior or action by an employee that breaches workplace rules or standards to such an extent that it justifies immediate dismissal.