Asked by Danielle Augustus on Jun 28, 2024
Verified
Whenever a constraint has negative slack,the shadow price is zero.
Negative Slack
The condition in project management when a task or project is running behind its scheduled timeline, indicating delayed progress.
Shadow Price
An economic concept representing the implicit value of a resource that is not directly priced in the market.
- Comprehend the relationship between constraint slack and shadow prices in optimization problems.
Verified Answer
JT
Jonathan TheodoreJun 28, 2024
Final Answer :
False
Explanation :
Negative slack in a constraint indicates that the constraint is binding, and the shadow price (or dual value) for a binding constraint is typically not zero. The shadow price represents the rate of change in the objective function value per unit increase in the right-hand side of the constraint, and for binding constraints, this value is often positive, indicating that relaxing the constraint would improve the objective function value.
Learning Objectives
- Comprehend the relationship between constraint slack and shadow prices in optimization problems.