MAT 540 week7

MAT 540 week7 - What does the shadow price reflect in a...

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What does the shadow price reflect in a maximization problem? Please explain The shadow price can also be referred to as dual values or marginal values. The shadow price is Defined in the text as the amount the organization would be willing to pay for one additional unit of a resource. Shadow price is used in equations created to indicate certain economic truths. In a maximization problem, the shadow price is used to reflect an adjustment in the value of an ideal optimization solution for a problem. The type of equation in which a shadow price will appear is called a constraint optimization How do the graphical and computer-based methods of solving LP problems differ? In what ways are they the same? Under what circumstances would you prefer to use the graphical approach? The graphical representation is the plot of the points in the plane which constitute the graph of a given real function or a pictorial diagram depicting interdependence of variables. Graphical method has two variables while computer based method has more than two variables. References:
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MAT 540 week7 - What does the shadow price reflect in a...

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