ACCA PM · Chapter 6 · Question 7 of 10
In the optimal solution to a linear programming problem, machine hours are not fully used. Which of the following is true of the machine-hour constraint?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) It has slack and its shadow price is zero
Explanation
A constraint that is not fully used is non-binding: it has slack (unused capacity). Obtaining more of a resource that is already in surplus cannot increase contribution, so its shadow price is zero.
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