Table 10-7 The Elastic Firm Has Two Products Coming on the Market

question 87

Multiple Choice

Table 10-7
The Elastic Firm has two products coming on the market: Zigs and Zags.To make a Zig,the firm needs 10 units of product A and 15 units of product B.To make a Zag,they need 20 units of product A and 30 units of product B.There are only 2,000 units of product A and 3,200 units of product B available to the firm.The profit on a Zig is $4 and on a Zag it is $6.Management objectives in order of their priority are:
(1) Produce exactly 50 Zigs.
(2) Achieve a target profit of at least $750.
(3) Use all of the product B available.
Let X₁ = number of Zigs,X₂ = number of Zags.
d₁^- = underachievement of Zig goal
d₁⁺ = overachievement of Zig goal
d₂^- = underachievement of profit target
d₂⁺ = overachievement of profit target
d₃^- = unused product B
d₃⁺ = additional amount of product B needed
-In the goal programming problem described in Table 10-7,what is the objective function?

• A)Min: P₁d₁^- + P₁d₁⁺ + P₂d₂⁺ + P₂d₂^- + P₃d₃^- + P₃d₃⁺
• B)Min: P₁d₁^- + P₁d₁⁺ + P₂d₂⁺ + P₃d₃⁺
• C)Min: P₁d₁^- + P₁d₁⁺ + P₂d₂^- + P₃d₃^-
• D)Min: P₁d₁^- + P₂d₂^- + P₃d₃^-
• E)Min: P₁d₁⁺ + P₂d₂⁺ + P₃d₃⁺

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Definitions:

Serotonin Level

The concentration of serotonin, a key neurotransmitter involved in regulating mood, appetite, and sleep, in the brain.

Law of Effect

A principle of learning stating that behaviors followed by satisfying consequences tend to be repeated, while those followed by unsatisfying consequences are less likely to be repeated.

Reward

A stimulus or event that increases the likelihood of a behavior being repeated; it is often used in the context of operant conditioning.

Punishment

A consequence delivered to an individual or animal in response to an undesirable behavior, with the intention of decreasing or eliminating that behavior.