Question

A company has a total amount of 15 hours for one specific resource. The upper limit of this resource is 18 (the right-hand side of the constraint). If the access to this resource is increased to 18.01 ________________________. Please choose the option that would best fit the empty space above:

Answer 1

Answer: A. the company will be willing to pay a different amount for this resource.

Explanation:

The upper limit for the resource was 18 and anything up to 18 would have attracted the same shadow price (price company estimated it was willing to pay for access to this resource).

The access was increased past this limit however to 18.01. The company therefore will now have more access to the resource and so will be willing to pay a different amount for the resource.