For a linear programming problem, assume that a given resource has not been fully used. We can conclude that the shadow price associated with that constraint:
Question 7 options:
| | 1) | will have a positive value | |
| | 2) | will have a negative value | |
| | 3) | will have a value of zero | |
| | 4) | could have a positive, negative or a value of zero. (no sign restrictions) | |
The shadow price of the associated constraint will be zero because the optimal solution has been reached without utilising the constraint fully. Thus even if the constraint is fully utlized it will not add any marginal benefit to the outcome
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