A Company Manufactures Two Products, a and B

question 74

Multiple Choice

A company manufactures two products, A and B. If x is the number of thousands of units of A and y is the number of thousands of units of B, then the cost and revenue in thousands of dollars are ​ ​
Find the number of each type of product that should be manufactured to maximize profit.
​

• A)3,000 units of product A 48,000 units of product B
• B)6,000 units of product A 24,000 units of product B
• C)12,000 units of product A 12,000 units of product B
• D)3,000 units of product A 12,000 units of product B
• E)12,000 units of product A 48,000 units of product B

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, usually set by the government.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price in a given period.

Tariffs

Taxes imposed by a government on imported goods.