During sensitivity analysis, the shadow price indicates:
A) The maximum value of contribution coefficients that will not alter the value of the objective function.
B) The minimum value of contribution coefficients that will not alter the value of the objective function.
C) The value of the objective function changes when one additional unit of the respective constraint is acquired.
D) All of the above

Question

Quizplus · Accepted Answer

The shadow price in sensitivity analysis represents the amount by which the value of the objective function would change with a one-unit increase in the right-hand side of a constraint, assuming all else remains constant.

During Sensitivity Analysis, the Shadow Price Indicates