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Respected sir?
Can you please tell me that is it necessary to have two binding constraints to calculate shadow price it we can calculate even if we have more than two constraints.
Thanks in advance.You must ask in the Ask the Tutor Forum if you are wanting me to answer – this forum is for students to help each other.
However, although usually in the exam there will be two binding constraints, you can calculate a shadow price if there is just one binding constraint. It would be remarkable if there were ever more than 2 binding constraints (and there never would be in the exam) but if there were then the shadow costs of all them would be zero.
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