A Publishing House Is Using 400 Printers and 200 Printing

question 15

Multiple Choice

A publishing house is using 400 printers and 200 printing presses to produce books.The printers' wage rate is $20,and the price of a printing press is $100.The last printer added 20 books to total output,while the last press added 50 books to total output.In order to maximize the number of books published with a budget of $28,000,the publishing house

• A)should continue to use 400 printers and 200 presses.
• B)should use more printers and fewer presses because printers cost less than presses.
• C)should use more printers and fewer presses because the last dollar spent on a printer yielded more output than the last dollar spent on a press.
• D)should use more presses and fewer printers because the marginal output of the last press was more than the marginal output of the last printer.
• E)should use more presses and fewer printers because the last dollar spent on a press yielded more output than the last dollar spent on a printer.

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Definitions:

Yield Management

A pricing strategy used in industries with fixed capacities to maximize revenue by adjusting prices based on demand.

Operations Management

is the area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Demand Curve

A graph showing the relationship between the price of a good and the amount of the good that consumers are willing to purchase at that price.