The reduced cost associated with a bounded variable is the same as the shadow price of the bound constraint.

Question

Quizplus · Accepted Answer

This statement is true. The reduced cost of a bounded variable represents the amount by which the variable's coefficient in the objective function would need to change in order for it to become non-basic, and is equal to the shadow price of the bound constraint that is currently limiting its movement.

The Reduced Cost Associated with a Bounded Variable Is the Same