A Company Produces Three Types of Bookcases: 4-Shelf Metal, 6-Shelf

question 108

Multiple Choice

A company produces three types of bookcases: 4-shelf metal, 6-shelf metal, and 4-shelf wooden. The 4-shelf metal bookcase requires 2.5 hours for fabrication, one hour to paint, and one-half hour to package for shipping.
The 6-shelf bookcase requires 4 hours for fabrication, 1.5 hours to paint, and one-half hour to package. The
Wooden bookcase requires 3 hours to fabricate, 2 hours to paint, and one-half hour to package. The daily
Number of hours available for each phase of production are: 167 for fabrication, 81 for painting, and 26 for
Packaging. How many of each type of bookcase can the company produce in one day?

• A) 14 4-shelf metal, 18 6-shelf metal, and 204 -shelf wooden
• B) 14 4-shelf metal, 16 6-shelf metal, and 18 4-shelf wooden
• C) 16 4-shelf metal, 18 6-shelf metal, and 184 -shelf wooden
• D) 164 -shelf metal, 16 6-shelf metal, and 204 -shelf wooden

Analyze the impact of changes in prices on the utility-maximizing combination of goods.

Interpret the significance of negative marginal utility.

Understand the budget line and how it represents all the combinations of goods a consumer can buy with a specific income.

Apply concepts of utility to evaluate consumer satisfaction from different goods combinations.

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