Use the Data Shown Below to Answer the Following Question(s)

question 28

Multiple Choice

Use the data shown below to answer the following question(s) .
Malone Inc.has identified five potential new processes; however,the firm is constrained by its available budget and human resources.Each process is expected to generate a return (given by the net present value) but requires a fixed amount of cash and personnel.Because the resources are limited,all processes cannot be selected.Processes cannot be partially completed; thus,either the process must be undertaken completely or not at all.The data are given in the table below.If a process is selected,it generates the full value of the expected return and requires the full amount of cash and personnel shown in the table.Define X_i = 1 if process i is selected,and 0 otherwise.
-Using Solver,the total return for the optimal solution is ________.

• A)$300,000
• B)$245,000
• C)$170,000
• D)$445,000

---

Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, leading to competition based on product differentiation, price, and marketing.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed by the business.

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power in setting prices.