Suppose a Company Sells Two Different Products, X and Y

question 11

Multiple Choice

Suppose a company sells two different products, x and y, for net profits of $6 per unit and $3 per unit, respectively. The slope of the line representing the objective function is:

• A)0.5
• B)−0.5
• C)2
• D)−2

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Definitions:

Net Income

The total amount of profit earned by a company after all expenses and taxes have been deducted from revenue.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, showing the financial results and financial position as if the group were a single entity.

Common Stock

Equity ownership in a corporation, granting shareholders voting rights and a share in the company's profits via dividends, pertaining to the fundamental stake in the company’s equity.