Consider the Following Linear Programming Problem

question 48

Multiple Choice

Consider the following linear programming problem:
Maximize 12X + 10Y
Subject to: 4X + 3Y ≤ 480
2X + 3Y ≤ 360
All variable ≥ 0
The maximum possible value for the objective function is

• A)360.
• B)480.
• C)1520.
• D)1560.

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Definitions:

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single entity has the power to significantly influence prices or market conditions.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, indicating the cost of producing each unit.

Average Total Costs

Represents the total expense per unit of output, comprising both fixed and variable costs, essential for assessing a company’s efficiency.