Use the Following to Answer Questions

question 39

Multiple Choice

Use the following to answer questions:
Figure: Payoff Matrix for Ajinomoto and ADM
-(Figure: Payoff Matrix for Ajinomoto and ADM) Look at the figure Payoff Matrix for Ajinomoto and ADM. The optimal combination for maximum combined profit occurs when ADM produces _____ million pounds and Ajinomoto produces _____ million pounds.

• A) 30; 30
• B) 40; 40
• C) 30; 40
• D) 40; 30

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Definitions:

Wages Forgone

The potential earnings that are lost or given up by choosing one alternative over another, often considered in decisions about education or training.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use, rather than selling them for a profit elsewhere.

Economic Costs

The total value of all resources used in the production of goods or services, including both explicit and implicit costs.

Opportunity Costs

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.