If the right-hand-side value of a binding constraint is increased by one unit, then the objective function will change in an amount equal to the value of the reduced cost.

Question

Quizplus · Accepted Answer

The change in the objective function value due to a one-unit increase in the right-hand-side value of a binding constraint is equal to the shadow price or dual value of that constraint, not the reduced cost, which is associated with the objective function coefficients of decision variables.

If the Right-Hand-Side Value of a Binding Constraint Is Increased