A Company Manufactures Two Types of Sneakers: Running Shoes and Basketball

question 6

Multiple Choice

A company manufactures two types of sneakers: running shoes and basketball shoes. The total revenue from x1 units of running shoes and y1 units of basketball shoes is: $R = - 3 x _ { 1 } ^ { 2 } - 10 x _ { 2 } ^ { 2 } - 2 x _ { 1 } x _ { 2 } + 50 x _ { 1 } + 96 x _ { 2 }$ , where x1 and x2 are in thousands of units. Find x1 and x2 so as to maximize the revenue.

• A) \(x _ { 1 } = \frac { 202 } { 29 } , x _ { 2 } = \frac { 119 } { 29 }\)
• B) \(x _ { 1 } = \frac { 119 } { 29 } , x _ { 2 } = \frac { 202 } { 29 }\)
• C) \(x _ { 1 } = \frac { 404 } { 59 } , x _ { 2 } = \frac { 238 } { 59 }\)
• D) \(x _ { 1 } = \frac { 238 } { 59 } , x _ { 2 } = \frac { 404 } { 59 }\)
• E) \(x _ { 1 } = \frac { 119 } { 29 } , x _ { 2 } = \frac { 101 } { 29 }\)

Comprehend the economic functions of profits and losses in signaling resource reallocation.

Grasp the significance of property rights in facilitating economic transactions and encouraging innovation.

Understand the concept of laissez-faire and its implications for government intervention in the economy.

Recognize the mechanisms by which money facilitates specialization and economic efficiency.