Assume That an Appliance Manufacturer Is Employing Variable Resources X

question 330

Multiple Choice

Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60, respectively. Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm

• A)should hire more of both X and Y.
• B)should hire more of Y and less of X.
• C)is producing with the least-costly combination of X and Y but could increase its profits by employing more of X and less of Y.
• D)is using the least-costly combination of X and Y but could increase its profits by employing less of both X and Y.

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Definitions:

Trachea

The windpipe, a tube connecting the larynx to the bronchi, allowing the passage of air to the lungs.

Ciliated Epithelium

A type of epithelial tissue with surface cells bearing cilia, which help in moving particles or fluid over the epithelial surface.

Tracheobronchial Tree

The network of air passages within the lungs, including the trachea, bronchi, and bronchioles, that allows air movement for respiration.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue at the top of the larynx; its function is to seal off the windpipe during eating, to prevent food from entering the airway.