Shadow price?

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    Anonymous
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    will only shadow price of materials be asked or also will shadow price of labour be asked?


    Avatar of John Moffat
    John Moffat
    Keymaster
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    You can be asked for the shadow price of any limited resource. However the approach is always the same. Rewrite the constraint equation assuming one extra unit of the limited resource. Re-calculate the optimum/best mix and the new total contribution. The shadow price is the extra contribution.

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