_________________ Is a Means of Assessing the Impact of Changing

question 1

Multiple Choice

_________________ is a means of assessing the impact of changing parameters in a linear programming model.

• A)simulplex
• B)simplex
• C)slack
• D)surplus
• E)sensitivity

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Definitions:

Average Total Cost

The total cost of production divided by the number of goods produced; a measurement of the cost of producing each unit.

Marginal Costs

The increase in cost resulting from the manufacture of one plus unit of a good or service.

Fixed Costs

Costs that do not change with the level of output, remaining constant regardless of the scale of production or services provided.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to the price of the good.