Hello.
This is the same question as the previous one. You may post this
question.
According to McCarl’s guide:
Marginal .m == Reduced cost, simplex criterion or dual value
marginal value for the variable.
In this website, http://www.inductive.com/showsimplex-answer.htm, it
says REDUCED COST is for NON-basic variables.
Reduced Cost for Non-Basic Variables
The Reduced Cost = Change in optimal objective function value per unit
increase of a corresponding variable currently at a value of zero.
It is an estimate of how much the objective function will change if
you make a zero-valued variable non-zero.
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REDUCED COST estimate (equivalent to shadow price) is an useful piece
of info. But this is only for Nonbasic variables.
My question is – How to obtain the shadow price for basic variables -
especially for the constraints that are binding?
Thanks
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