Given an objective function value of 150 and a shadow price for resource 1 of 5, if 10 more units of resource 1 are added (assuming the allowable increase is greater than 10), what is the impact on the objective function value?
A) increase of 50
B) increase of unknown amount
C) decrease of 50
D) increase of 10

Question

Quizplus · Accepted Answer

The shadow price represents the rate of improvement in the objective function value for each additional unit of a resource. Therefore, if 10 more units of resource 1 are added, and the shadow price for resource 1 is 5, the objective function value would increase by $10 \times 5 = 50$.

Given an Objective Function Value of 150 and a Shadow