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A Shadow Price Measures The

Question 11

Multiple Choice

A shadow price measures the:


A) impact of all nonbinding constraints on the objective function simultaneously.
B) market price of the resource in question.
C) total profit earned from the firm's given decisions.
D) change in the value of the objective function associated with a unit change in the resource.
E) loss incurred by not operating at the optimal point of the feasible region.

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