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What is the purpose of shadow prices in linear programming?

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Shadow prices indicate the value of relaxing a constraint by one unit. Specifically, they represent the change in the objective function value for a one-unit increase in the right-hand side of a constraint. Shadow prices help assess the economic worth of resources.

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The purpose of shadow prices in Linear Programming (LP) is to indicate the value of an additional unit of a resource or constraint in the optimal solution. Specifically, a shadow price represents the rate of change in the objective function's value (e.g., profit or cost) per unit increase in the right-hand side of a constraint, assuming all other factors remain constant.

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The purpose of shadow prices in linear programming is to show how much the value of the objective (like profit or cost) would change if you had one more unit of a limited resource. This helps decision-makers understand which resources are most valuable and how to allocate them effectively.


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