Shadow prices in LPP


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Shadow prices in LPP.(Apr 2002) (Apr 2005) (Apr 2006)

 

Shadow prices are the index row (Cj – Zj row) values for resources i. e. Slack variables. Shadow prices indicate the value of 1 extra unit of resource. When a resource is scarce resource, if we want to acquire 1 extra unit of that scarce resource how much maximum price should we pay for it is determined by shadow price.


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