Discussion
In a linear programming problem, if a resource is not fully utilized, the shadow price of that resource is
Answer: C
The shadow price is zero.
A shadow price is the increase in the optimal objective value from one more unit of a resource. If some of the resource is already left over at the optimum, an extra unit would only add to the slack and could not improve the objective. This is complementary slackness: a constraint with positive slack has a zero dual value.
A positive (or, for minimisation, negative) shadow price is possible only for a binding resource, one that is fully used. An infinite shadow price has no meaning for a resource that is not even fully used.
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