Question: In a profit maximization problem shadow price for a constraint representing availability of production hours in an assembly department is given at 4.25. Current maximum
In a profit maximization problem shadow price for a constraint representing availability of production hours in an assembly department is given at 4.25. Current maximum profit (optimal value of the objective function) is 3600. If additional hour is allocated to production in the assembly department, then
a. optimal solution would stay the same
b. profit increases by 4.25 and optimal solution stays the same
c. the constraint is non-binding
d. optimal value of the objective function will increase to 3604.25 and the optimal solution will change
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