The Table Gives Marginal Product Data for Resources a and B

question 248

Multiple Choice

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $10 and $20 respectively, what is the profit-maximizing combination of resources?

• A)6 of a and 3 of b
• B)3 of a and 6 of b
• C)5 of a and 4 of b
• D)4 of a and 5 of b

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Definitions:

Volume

A measure of the amount of space that an object or substance occupies.

Glucosuria

The excretion of glucose into the urine, often an indicator of high blood sugar levels or diabetes.

Abnormal Decrease

A reduction in quantity or function below the normal or expected level.

Diabetes Mellitus

A metabolic disorder characterized by high blood sugar levels over a prolonged period due to insulin production deficiencies or action.