Big Oaks Can Produce Either Paper Products or Lumber with Each

question 150

Multiple Choice

Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amo paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable prop The above table summarizes Big Oaks production possibilities from each harvested tree.
-Refer to the table above. Suppose the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5 and Big Oaks is producing the profit- maximizing quantity of lumber and paper products. If the profit from each unit of lumber increases from $5 to $6 and the profit for each unit of paper products does not change, to maximize profit, Big Oaks should produce a______ proportion of lumber and produce _______ units of paper products and lumber.

• A)smaller; less
• B)greater; more
• C)smaller; more
• D)greater; less

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Definitions:

Progression Principle

In fitness and training, the idea that the intensity and duration of exercise should increase gradually over time for optimal improvement.

Need for Power

An individual's desire to influence, control, or have authority over others.

Social Power

The ability of an individual or group to influence or control others within a social or organizational context.

Personal Gratification

The feeling of pleasure or satisfaction that comes from achieving something, enjoying an activity, or fulfilling a desire.