Final answer:
A dynamic-programming algorithm for the modified rod-cutting problem aims to maximize revenue by considering prices of rod segments and the costs incurred by each cut, to find the most profitable cutting strategy.
Step-by-step explanation:
The main goal in the modified rod-cutting problem is to maximize revenue while considering both the selling price of the segments and the costs associated with making cuts. The dynamic-programming algorithm would calculate the best way to cut the rod into pieces by comparing the price obtained for each piece minus the cutting cost to find the combination with the highest revenue. To achieve this, the algorithm would start from the smallest pieces and build up to the full length of the rod, considering all possible places to cut and factoring in the cost for each potential cut. By comparing the sum of the prices for each piece minus the fixed costs of cuts against the best options found for shorter lengths, it can determine the most profitable way to cut the rod at every length until the full length of the rod is considered.