Mathematics · Linear Programming
China Co uses material B, which has a current market price of $0.80 per kg. A linear programming model shows that the shadow price for material B is $2.00 per kg. Which of the following statements 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 that 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 that should be paid for an additional kg of material B is $2.80.
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