Question

Suppose that the shadow price for assembly time is $5/hour. If all assembly hours were used under the initial LP solution and workers normally make $4/hour but can work overtime for $6/hour, what should management do?

A) do not change available hours for assembly time

B) decrease available hours for assembly time

C) increase available hours for assembly time

D) not enough information

E) Either A or C will result in larger profits than B.

Answer

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