Hello
in this question why the correct answer is A?
The shadow price of skilled labour for CBV is currently $8 per hour.
What does this mean?
A. Contribution will be increased by $8 per hour for each extra hour of skilled labour that can be obtained
B. The cost of obtaining additional skilled labour resources is $8 per hour
C. Total costs will be reduced by $8 for each additional hour of skilled labour that can be obtained
D. There is a hidden cost of $8 for each hour of skilled labour actively worked
Ask the Tutor ACCA PM
Shadow price
5y ago#1'A' is the standard way that the shadow price is always calculated.
Do watch my free lectures on linear programming where I do explain this, with examples.
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