LaGrange multipliers are:
A)partial derivatives.
B)nonzero only for an optimal solution.
C)shadow prices.
D)used to verify feasibility.

Question

Quizplus · Accepted Answer

LaGrange multipliers can be interpreted as shadow prices, which represent the rate of change in the objective function of an optimization problem with respect to a change in a constraint boundary. This concept is particularly useful in economics and operations research for understanding how the optimal value of a function changes as constraints are marginally relaxed or tightened.

LaGrange Multipliers Are