The Shadow Price of a Slack Variable in a Linear

The shadow price of a slack variable in a linear programming solution that maximises the total contribution margin reflects

A) The amount of excess capacity available for the associated constraint
B) The decrease in contribution margin that occurs if a unit of the associated product is produced
C) The contribution margin returned by the firm's profitable product
D) The increase in contribution margin that would occur if another unit of the constrained resource were available

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free