Mathematics · Linear Programming
C Co uses material B, which has a current market price of $0.80 per kg. In a linear programming model to maximize profit, the shadow price of material B is $2.00 per kg. Which of the following statements is/are correct? 1. Contribution will be increased by $2.00 for each additional kg of material B purchased at the current market price. 2. The maximum price which should be paid for an additional kg of material B is $2.00. 3. Contribution will be increased by $1.20 for each additional kg of material B purchased at the current market price. 4. The maximum price which should be paid for an additional kg of material B is $2.80.
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