Explain what the shadow price means in a maximization problem

• Explain what the shadow price means in a maximization problem.
• Explain what this tells us from a management perspective.

Shadow price also known as dual values meaning the marginal value of one additional unit of resource. Shadow price is the estimated price of a good or service where no market price exists. Shadow price in maximizing problem, we deal with the constraints and objectives. Constraints are considered restrictions on the amount of resources available and objectives are considered as profit.To be able to tell how much the optimal value of objective would increase per unit and the increase in the amount of resource available, the shadow price associated with a particular constraint would give this information.