Page 34 - F5 Slides 2017-18
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Linear programming











        Shadow (or dual) prices


        • The extra contribution that results from having one extra


            unit of a scarce resource.


        • The max premium (i.e. over the normal cost) that the


            firm should be willing to pay for one extra unit of each

            constraint.



        • Non-critical constraints will have zero shadow prices as

            slack exists already.















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