A __________ is the shadow price of a binding simple lower or upper bound on the decision variable.
A)reduced gradient
B)binding constraint
C)binary variable
D)local optimum

Question

Quizplus · Accepted Answer

The shadow price of a binding simple lower or upper bound on the decision variable is also known as the reduced cost or reduced gradient. This value represents how much the objective function value would change if the bound on the decision variable were relaxed by one unit. Therefore, option A) reduced gradient is the best choice.

A __________ Is the Shadow Price of a Binding Simple