Related to sensitivity analysis in linear programming,when the profit increases with a unit increase in a resource,this change in profit is referred to as the:
A) add-in price
B) sensitivity price
C) shadow price
D) additional profit

Question

Quizplus · Accepted Answer

The change in profit with a unit increase in a resource is referred to as the shadow price in linear programming. Shadow prices are used to determine the value of a resource in a linear programming model and provide information about the sensitivity of the solution to changes in the availability of resources. Therefore, option C is the correct answer. Options A, B, and D are not correct as they are not commonly used terms in linear programming for measuring changes in profit with a unit increase in a resource.

Related to Sensitivity Analysis in Linear Programming,when the Profit Increases