If a slack variable has a positive value (is basic) in the optimal solution to a linear programming problem, then the shadow price of the associated constraint
A) is always zero.
B) is always greater than zero.
C) is always less than zero.
D) could be any value (i.e., zero greater than zero or less than zero).

Question

Quizplus · Accepted Answer

The shadow price of a constraint is zero if the constraint is not binding at the optimal solution. If a slack variable is positive (basic) in the optimal solution, it means the associated constraint is not binding, hence its shadow price is zero.

If a Slack Variable Has a Positive Value (Is Basic)