Hobson Limited Produces Two Products, the X and Y, Which

question 2

Multiple Choice

Hobson Limited produces two products, the X and Y, which both use the same grade of specialist labour. Only 3800 specialist labour hours are estimated to be available for the 20X1 financial year because of skills shortages in the economy as a whole.
Ideally the directors would like to sell 500 units of X and 500 units of Y but they recognize the actual amount that can be produced and sold is likely to be limited by the labour shortage.
The following information is available about the products:

What is the optimal production plan for 20X1 (to the nearest whole unit) ?

• A) 400 units of X and 200 Y
• B) 171 units of X and 400 units of Y
• C) 300 units of X and 400 units of Y
• D) 400 units of X and 144 units of Y

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Definitions:

Capital Flight

The rapid movement of large sums of money or assets out of a country due to economic or political instability.

Industrial Advanced Countries (IACs)

Countries characterized by high levels of industrialization, technological advancement, and economic development.

Skilled Workers

Employees who have specialized training, expertise, or qualifications that allow them to perform complex job tasks.

Agricultural Workers

Individuals engaged in various activities related to farming, including cultivation, harvesting, and livestock rearing.