Question: A linear program for a resource allocation problem has been formulated and solved. The objective is profit maximization. Suppose the shadow price of the availability

A linear program for a resource allocation problem has been formulated and solved. The objective is profit maximization. Suppose the shadow price of the availability constraint for resource R (which is a "" constraint) is $7 per kilogram. Indicate whether each statement is True or False.

1. In the optimal solution, the resource R is completely used. Indicate whether this is True or False.

2. Every additional unit of resource R costs $7, provided its usage is within the allowable limits. Indicate whether this is True or False.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!