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A Shadow Price Measures

Question 24

Multiple Choice

A shadow price measures:


A) the impact of all nonbinding constraints on the objective function simultaneously.
B) the market price of the resource in question.
C) the revenue earnings from the possible sale of goods.
D) the change in the value of the objective function associated with a unit change in the resource..
E) the amount of loss incurred by not operating at the optimal point of the feasible region.

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