What are shadow prices in Linear Programming?
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Shadow prices are the values associated with the constraints in the dual of an LP problem. They represent the amount by which the objective function value would change for a one-unit increase in the right-hand side of the constraint, assuming all other data remains constant.
Shadow prices in Linear Programming represent the change in the objective function value resulting from a one-unit increase in the right-hand side of a constraint. They indicate the value of relaxing a constraint and reflect how much the optimal solution would improve if additional resources were available. Shadow prices are particularly useful in sensitivity analysis, helping decision-makers understand the economic worth of constraints and guide resource allocation effectively.
Shadow prices in linear programming represent the value of an additional unit of a resource, indicating how much the objective function would improve if the resource constraint is relaxed.