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Choose the One Alternative That Best Completes the Statement or Answers

question 232

Multiple Choice

Choose the one alternative that best completes the statement or answers the question.
-The Acme Class Ring Company designs and sells two types of rings: the VIP and the SST. They can produce up to 24 rings each day using up to 60 total man-hours of labor. It takes 3 man-hours to make one VIP ring and 2
Man-hours to make one SST ring. How many of each type of ring should be made daily to maximize the
Company's profit, if the profit on a VIP ring is $40 and on an SST ring is $35?


Definitions:

Total Product

Total Product refers to the overall quantity of output that a firm produces, usually with respect to a given quantity of inputs over a specific period of time.

Marginal Products

The additional output produced as a result of utilizing one more unit of a particular input.

Marginal Product

It is the increase in output that results from a one-unit increase in the input, keeping all other inputs constant.

Average Product

The output per unit of a particular input, such as labor or capital, calculated by dividing total product by the quantity of input.

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