It has been determined that, with respect to resource X, a one-unit increase in availability of X would lead to a $3.50 increase in the value of the objective function. This value would be X's:
A) range of optimality.
B) shadow price.
C) range of feasibility.
D) slack.
E) surplus.

Question

Quizplus · Accepted Answer

The given information suggests that X is a non-negativity constraint and has a shadow price of $3.50. Shadow price represents the increase in the value of the objective function per unit increase in the availability of a resource, subject to the availability of that resource. Therefore, option B is correct. Option A, C, D, and E are incorrect as they do not represent the concept of shadow price.

It Has Been Determined That, with Respect to Resource X