Question

Given an objective function value of 150 and a shadow price for resource 1 of 5, if 10 more units of resource 1 are added (assuming the allowable increase is greater than 10), what is the impact on the objective function value?

Answer 1

The impact on the objective function is that it is increased by 50.

Explanation:

In this case we have that the value of the objective function is 150, and they tell us that 10 more units of resource one are added, but they tell us that the shadow price ranges from 1 to 5, therefore:

10 * 5 = 50

Which means that the impact on the objective function is that it is increased by 50.