Question: During a post optimality analysis, David Ferguson a senior analyst with Pearce, Morgan, and Froid was examining the results of a linear model for a
During a post optimality analysis, David Ferguson a senior analyst with Pearce, Morgan, and Froid was examining the results of a linear model for a client that was rather complex, looking at the results of the output David notice a number of constraints had a negative dual price shadow price for this cost minimization. He asks the junior analyst to interpret the meaning of the dual price. The Junior analyst responded that the overall costs are expected to come down if you increase the righthand side constraint. David reminded the Junior analyst that dual price is only relevant in the range of optimality.
Which of the above statements is least likely correct?
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