Consider a partial output from a cost minimization problem that has been solved to optimality Final Shadow Constraint Allowable Allowable Name Value Price R H Side Increase Decrease Labor Time 700 5 700 160 120 The Labor Time constraint is a resource availability constraint Which of the following is a possible new shadow price if the right hand side for this constraint decreases to 550 Both 1 and 4 are possible 1 7 4 0

The Answer is in the image, click to view ...

Question: Consider a partial output from a cost minimization problem that has been solved to optimality. Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side

Consider a partial output from a cost minimization problem that has been solved to optimality.

	Final	Shadow	Constraint	Allowable	Allowable
Name	Value	Price	R.H. Side	Increase	Decrease
Labor Time	700	-5	700	160	120

The Labor Time constraint is a resource availability constraint. Which of the following is a possible new shadow price if the right-hand-side for this constraint decreases to 550?

Both -1 and -4 are possible

-1

-7

-4

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!

6. Consider a partial output from a cost minimization problem that has been solved to optimality. Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side Increase Decrease Labor Time...

Consider a partial output from a cost minimization problem that has been solved to optimality. Final Shadow Constraint Allowable Allowable Name Value Price R.H. Side Increase Decrease Labor Time 700...

DSCI 5210 model based business intelligence 6. Consider a partial output from a cost minimization problem that has been solved to optimality. Final Shadow Constraint Allowable Allowable Name Value...

You are offered the chance to obtain more of the "Modeling" constraint. The offer is for 5 0 units and the total price is $ 5 6 0 . What should you do ? Only the "Constraints" section of Linear...

You are offered the chance to obtain more of the "Washing" constraint. The offer is for 1 5 units and the total price is $ 7 0 0 . What should you do ? Only the "Constraints" section of Linear...

Cell 20 250 20 78 17 78 20 0 112 92 17 0 77 Swiftcar Rental Company is a local rental car company that serves the Ontario area. The management team has identified the optimal booking schedule for...

You are offered the chance to obtain more of the "Labor" constraint. The offer is for 1 5 units and the total price is $ 1 0 5 0 . What should you do ? Only the "Constraints" section of Linear...

You are offered the chance to obtain more of the "Washing" constraint. The offer is for 1 5 units and the total price is $ 7 0 0 . What should you do ? Only the "Constraints" section of Linear...

Different companies have different risk exposures, and their risk management approach is customized to the type of risk the company is exposed to. Consider the case of Trident Bank & Trust....

The following plot shows the pH curves for the titrations of various acids with 0.10 M NaOH (all of the acids were 50.0-mL samples of 0.10 M concentration). a. Which pH curve corresponds to the...

The payback method of capital budgeting may be applied to either annuity cash flows or uneven cash flows. True False

Wagner Remodelers Inc. is looking for a new city in which to relocate their home remodeling business. The company employs highly skilled craftspeople who rehabilitate old housing. Most of their...