A Firm Is Producing Two Goods (X and Y)that Are $$Q _ { d } = 120 - 4 P _ { x } - 10 P _ { y }$$

question 51

Multiple Choice

A firm is producing two goods (X and Y) that are related in consumption.The demand function for X is: $$Q _ { d } = 120 - 4 P _ { x } - 10 P _ { y }$$ Which of the following pairs of goods might the firm be producing?

• A)cars and gasoline
• B)cola and caffeine-free coke
• C)newspapers and tennis balls
• D)bran cereal and sugar-frosted corn flakes
• E)both b and d

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Definitions:

Activity Variance

The difference between what was planned or expected in terms of costs or activity levels and what was actually achieved.

Net Operating Income

The profit generated from a company's operational activities, excluding taxes and interest.

Units

Basic quantities or measures of a product or service, representing a countable number of these items.

Activity Variance

The difference between the estimated cost/benefit of an activity and its actual cost/benefit.