What Combination of X and Y Will Yield the Optimum

question 88

Multiple Choice

What combination of x and y will yield the optimum for this problem? Minimize $3x + $15y, subject to (1) 2x + 4y < 12 and (2) 5x + 2y < 10 and (3) x, y ≥ 0.

• A) x = 2, y = 0
• B) x = 0, y = 3
• C) x = 0, y = 0
• D) x = 1, y = 5
• E) x = 0, y = 4

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Definitions:

Insiders

Individuals or entities that have access to non-public, material information about a company, often corporate officers, directors, or significant shareholders.

Informationally Efficient

The concept where a market is said to be informationally efficient if all relevant information is fully and immediately reflected in a security's market price.

Allocationally Efficient

Refers to a market scenario where resources are distributed in a way that maximizes the benefits to all participants, considering their preferences and needs.

Random Walk

A theory suggesting that stock market prices evolve according to a random path, making it impossible to consistently predict future movements based on past trends.