Question

The shadow price measures, per unit increase in the right hand side of the constraint, Select one: a. the change in the value of the optimal solution. b. the increase in the value of the optimal solution. c. the decrease in the value of the optimal solution. d. the improvement in the value of the optimal solution.

Answer 1

Answer:

A. the change in the value of the optimal solution.

Explanation:

• A shadow pricing is associated with each constraint of the model and is the instantaneous changes that occur in the objective model of the optimal solution that is obtained by changing the right-hand side constrained by one unit and a reduced cost is associated with each variable of the model. Also referred to  as a monetary values that is assigned to the current unknowable or difficult to calculate costs.