A Firm Makes Two Products, Y and Z

question 6

Multiple Choice

A firm makes two products, Y and Z. Each unit of Y costs $10 and sells for $40. Each unit of Z costs $5 and sells for $25. If the firm's goal were to maximize profit, what would be the appropriate objective function?

• A) Maximize profit = $40Y = $25Z
• B) Maximize profit = $40Y + $25Z
• C) Maximize profit = $30Y + $20Z
• D) Maximize profit = 0.25Y + 0.20Z
• E) Maximize profit = $50(Y + Z)

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Definitions:

Consequences

The results or outcomes of an action, which can be positive or negative.

Punishment

The imposition of a penalty as retribution for an offense, distinct from discipline as it primarily focuses on retribution and control.

Guidance

Advice or information aimed at resolving problems or issues, guiding individuals towards making informed decisions.

Discipline

The practice of training individuals to follow a particular code of behavior or order, often using punishment to correct disobedience.