The shadow price of a nonbinding constraint is:
A) negative in value
B) zero.
C) a value between zero and one.
D) proportionate to the amount of profit
E) equal to the profit per unit of the decision variable concerned.

Question

Quizplus · Accepted Answer

A nonbinding constraint means that the constraint is not limiting the feasible region of the problem. Therefore, the shadow price of a nonbinding constraint is zero because an increase or decrease in the right-hand side value of the constraint does not affect the optimal solution or the objective function value.

The Shadow Price of a Nonbinding Constraint Is