Determine the Values of X and Y That Produce the Maximum

question 56

Multiple Choice

Determine the values of x and y that produce the maximum value of the objective function on the feasible
region. Determine the maximum value of the objective function on the feasible region.
- $$\begin{array} { l } x \geq 0 , y \geq 0 \\110 x + 70 y \leq 8,600 \\x + y \leq 100 \\\quad \text { Maximize: } z = 35 x + 30 y\end{array}$$

• A) \(x = 55 , y = 45\); Maximum value: 3,275
• B) \(x = 40 , y = 60\); Maximum value: 3,200
• C) \(x = 45 , y = 55\); Maximum value: 3,225
• D) \(x = 60 , y = 40\); Maximum value: 3,300

Explain the principle of profit maximization and its application in perfectly competitive markets.

Recognize the effects of market changes (e.g., entry/exit of firms, demand shifts) on firm strategies and market equilibrium.

Understand the role of production costs in determining firm behavior and market outcomes.

Identify the factors leading to the differentiation between perfectly competitive and non-perfectly competitive markets.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Revenues

The gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Nonfinancial Information

Data that relates to the operational, environmental, and social aspects of a business, which cannot be easily quantified in monetary terms.