Ottawa Ltd -Refer to Figure 6-12

question 23

Multiple Choice

Ottawa Ltd. produces two products from a joint process. Information about the two joint products is as follows: $\begin{array}{lcc}&\text { Product } & \text { Product } \\&\mathrm{X} & \mathrm{Y}\\ \text { Anticipated production (in kgs) } & 2,000 &4,000\\ \text { Selling price per kg at split-off } & £ 30& £16 \\\text { Additi onal processing costs per } \mathrm{kg} \\\text { after split-off (all variable) } & £ 15& £30 \\\text { Selling price per kg after } & \\\text { further processing }&£40&£50 \end{array}$
-Refer to Figure 6-12. Ottawa currently sells both products at the split-off point. If Ottawa makes decisions that maximize profit, Ottawa's profit will increase by

• A)£16,000.
• B)£4,000.
• C)£50,000.
• D)£10,000.

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Definitions:

Reinforcement-Seeking Behavior

Actions specifically performed with the intention of obtaining reward or reinforcement.

Place Cells

Neurons in the hippocampus that become active when an animal is in or is thinking about a specific location.

Reward

An incentive or positive reinforcement that promotes a desired behavior by providing pleasure or satisfaction.