The Following Linear Programming Problem Has Been Written to Plan

question 10

Multiple Choice

The following linear programming problem has been written to plan the production of two products. The company wants to maximize its profits.
X₁ = number of product 1 produced in each batch
X₂ = number of product 2 produced in each batch
How much profit is earned per each unit of product 2 produced?

• A)150
• B)175
• C)200
• D)250

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Definitions:

Market System

A market system is an economic system in which decisions regarding investment, production, and distribution are based on supply and demand, and prices are determined in a free price system.

Property Rights

Property rights are the legal rights to use, control, and dispose of property, including land, buildings, or intellectual property.

Central Planning

A system where a nation's government makes all decisions regarding the economy, including resources allocation and production levels.

Unselfish Behavior

Actions that prioritize the welfare of others over one's own personal benefit.