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A Shadow Price Reflects Which of the Following in a Maximization

Question 26

Multiple Choice

A shadow price reflects which of the following in a maximization problem?


A) The marginal cost of adding additional resources
B) The marginal gain in the objective that would be realized by adding one unit of a resource
C) The net gain in the objective that would be realized by adding one unit of a resource
D) The marginal gain in the objective that would be realized by subtracting one unit of a resource
E) None of the choices are correct.

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