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Labour time in the packing department is in short supply and limited to 100 hours. Linear programming has been carried out and the shadow price of an hour of labour time has been calculated as $7.10. By employing temporary staff the amount of time available can be increased to 130 hours. Labour ceases to be a limiting factor on production once an extra 19 hours have been found, however. Which of the following statements are correct? A. As more and more labour time becomes available, the shadow price tends towards zero. B. The required maximum supply of labour hours is 119 hours. C. The required increase in labour hours is 30 hours. D. As more and more labour time becomes available, the shadow price becomes larger and larger. |