When mathematicians are presented with a linear programming problem, they will not only determine the optimal solution but will also supply what are called shadow prices for each resource. This chapter project develops the concept of a shadow price.
Consider the furniture manufacturing problem. The constraint for finishing is
The figure shows the graph of the original feasible set for the furniture manufacturing problem drawn with a red boundary. The blue line segments show the change in the feasible set when the new finishing constraint is used. Find the coordinates of points A and B.
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