Question

Given an objective function value of 150 and a shadow price for resource 1 of 5, if 10 more units of resource 1 are added (assuming the allowable increase is greater than 10), what is the impact on the objective function value? (Assume maximization problem)

Answer 1

Answer:

The objective function will increase by 50 (10units × 5)

Explanation:

The shadow price is the value that the objective function will change by if you increase the constraint by one unit.