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Contribution per unit of scarce resource
Cee = $105/5 = $21, Dee = $96/6 = $16
“Cee will be produced first. Material requirements for Cee = 60,000 × 5kg = 300,000 kg, less than the 500,000 kg available, so the shadow price will be the contribution per unit of scarce resource for Dee as production of Dee will be restricted.” This is an extract from the study hub. Would the shadow price be $37 if the production for both products were restricted?
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