The optimal combination of decision variables of a linear programming problem is x = 20 and y = 30.The given resource constraints are: 5x + 2y  150 and y  15.The shadow price of the second constraint is _____.
A)1.5
B)0.67
C)Zero
D)10
E)0.1

Question

Quizplus · Accepted Answer

The shadow price of a constraint is the amount by which the objective function value would improve if the right-hand side of the constraint is increased by one unit. Since the second constraint y ≥ 15 is not binding (y = 30), its shadow price is zero.

The Optimal Combination of Decision Variables of a Linear Programming