Check all correct statements below about the shadow price:The shadow price of a constraint indicates how much you would gain in the OFV by eliminating the constraint.The shadow price of a constraint indicates how much you would be willing to pay to relax the constraint by one unit.The shadow price of a constraint is the rate of change of the objective function value (OFV) per unit change in the RHS of the constraint.When the shadow price of a constraint is non-zero, it means that the constraint is binding.Regardless of how much it costs, one should continue relaxing each constraint until its shadow price becomes zero.The shadow price of a constraint is the amount by which the objective function value (OFV) worsens when the constraint is tightened (made more restrictive) by one unit.The shadow price of a constraint is the amount by which the objective function value (OFV) improves when the constraint is relaxed (made less restrictive)by one unit.The shadow price of a constraint is not defined when the constraint is non-binding.

Here's an explanation of each correct statement about the shadow price:"The shadow price of a…

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12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 3SC: In Example 3, if the accountant earns a profit of 100 on each individual return and a profit of 175...

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Check all correct statements below about the shadow price:

The shadow price of a constraint indicates how much you would gain in the OFV by eliminating the constraint.
The shadow price of a constraint indicates how much you would be willing to pay to relax the constraint by one unit.
The shadow price of a constraint is the rate of change of the objective function value (OFV) per unit change in the RHS of the constraint.
When the shadow price of a constraint is non-zero, it means that the constraint is binding.
Regardless of how much it costs, one should continue relaxing each constraint until its shadow price becomes zero.
The shadow price of a constraint is the amount by which the objective function value (OFV) worsens when the constraint is tightened (made more restrictive) by one unit.
The shadow price of a constraint is the amount by which the objective function value (OFV) improves when the constraint is relaxed (made less restrictive)by one unit.
The shadow price of a constraint is not defined when the constraint is non-binding.

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