The difference between the left-hand side and right-hand side of a less-than-or-equal-to constraint is referred to as
A)surplus.
B)constraint.
C)slack.
D)shadow price.
E)None of the above

Question

Quizplus · Accepted Answer

Slack is the difference between the left-hand side and right-hand side of a less-than-or-equal-to constraint. It represents the amount by which the left-hand side could be increased before reaching the constraint boundary. Surplus, on the other hand, is the difference between the actual value of the left-hand side and the right-hand side of the constraint, and is only relevant in maximization problems. Constraint refers to the mathematical representation of the limitation being imposed. Shadow price is the marginal value of an additional unit of a resource in the objective function.

The Difference Between the Left-Hand Side and Right-Hand Side of a Less-Than-Or-Equal-To