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GATE 2022 ME (ME1) – Question 21

Operations Research · Linear programming and the simplex method · 1 mark · Multiple choice

In a linear programming problem, if a resource is not fully utilized, the shadow price of that resource is

  1. positive
  2. negative
  3. zero
  4. infinity

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Correct answer: (C) zero

Explanation

The shadow price is the gain in the objective for one more unit of the resource. If part of the resource is left over (the constraint is not binding), another unit does not change the optimum, so the shadow price is zero.