The Operations Manager for the Blue Moon Brewing Co

question 72

Multiple Choice

The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D) . Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients) , of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. What is the time constraint?

• A)2 L + 3 D ≤ 480
• B)2 L + 4 D ≤ 480
• C)3 L + 2 D ≤ 480
• D)4 L + 2 D ≤ 480
• E)5 L + 3 D ≤ 480

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Definitions:

Efficient-market Hypothesis

The theory that all known information is already reflected in stock prices, making it impossible to consistently achieve higher returns than the overall market.

Security Prices

The current cost or value at which a particular security, such as stocks, bonds, or options, can be bought or sold in the market.

Empirical Validity

The extent to which a theoretical concept is supported by real-world evidence or data.

Information Processing

The acquisition, recording, organization, retrieval, display, and dissemination of information.