When mathematicians are presented with a linear programming problem, they will not only determine the optimal solution but will also supply what are called shadow prices for each resource. This chapter project develops the concept of a shadow price.
Consider the furniture manufacturing problem. The constraint for finishing is
Fill in the blanks in the following sentence: The shadow price associated with a resource can be interpreted as the change in value of the ______ ______ per unit change of the availability of the resource.
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Finite Mathematics & Its Applications (12th Edition)
- College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning