The value of a shadow price cannot be negative because it represents the amount by which the objective function value improves for a unit increase to the right hand side of a constraint True False A company makes two products, A and B A sells for $100 and B sells for $90 The variable production costs are $30 per unit for A and $25 for B Let x 1 denote the number of units of product A to produce and x 2 denote the number of units of product B to produce From the companys perspective, which of the following would not be a reasonable objective function Max 30 x 1 25 x 2 Max 70 x 1 65 x 2 Max 100 x 1 90 x 2 All of the options given are reasonable

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Question: The value of a shadow price cannot be negative because it represents the amount by which the objective function value improves for a unit increase

The value of a shadow price cannot be negative because it represents the amount by which the objective function value improves for a unit increase to the right hand side of a constraint. True False

A company makes two products, A and B. A sells for $100 and B sells for $90. The variable production costs are $30 per unit for A and $25 for B. Let x₁ denote the number of units of product A to produce and x₂ denote the number of units of product B to produce. From the companys perspective, which of the following would not be a reasonable objective function:

		Max 30x₁ + 25x₂
		Max 70x₁ + 65x₂
		Max 100x₁ + 90x₂
		All of the options given are reasonable

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