Suppose That Profit for a Particular Product Is Calculated Using

question 24

Multiple Choice

Suppose that profit for a particular product is calculated using the linear equation: Profit = 20S + 3D. Which of the following combinations of S and D would yield a maximum profit? ​

• A)S = 0, D = 0
• B)S = 405, D = 0
• C)S = 0, D = 299
• D)S = 182, D = 145

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Definitions:

Active Approach

is a strategy in management or investing that involves taking specific actions to achieve a particular goal, as opposed to a passive or laissez-faire approach.

Natural Adjustments

Natural adjustments refer to the self-correcting mechanisms of markets or economies that respond to imbalances or disruptions without the need for external intervention.

Expansionary Gap

A situation where the actual output of an economy exceeds its potential output, typically characterized by increasing prices.

Self-corrects

Refers to the ability of a market or economic system to automatically adjust and return to equilibrium without outside intervention.