Which term describes the additional amount a company will make if one more unit of a constrained resource is added?
A)Shadow price
B)Slack
C)Binding
D)Final value
E)Sensitivity value

Question

Quizplus · Accepted Answer

The additional amount a company will make if one more unit of a constrained resource is added is known as the shadow price. It represents the change in profit per unit increase in the resource constraint.

Which Term Describes the Additional Amount a Company Will Make