The Constraint for Resource 1 Is 5 X₁ + 4 $\ge$

question 27

Multiple Choice

The constraint for resource 1 is 5 X₁ + 4 X₂ $\ge$ 200. If X₁ = 40 and X₂ = 20, how many additional units, if any, of resource 1 are employed above the minimum of 200?

• A)0
• B)20
• C)40
• D)80

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Definitions:

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing properties to promote affordable housing.

Inefficiently Low-Quality Apartments

Apartments that are below optimal living standards due to market failures, often resulting in lower than socially preferable quality.

Opportunity Cost

Opportunity cost is the potential benefit that one misses out on when choosing one alternative over another.

Black Markets

Illegal markets that arise when selling, trading, or buying goods or services are prohibited by law or are controlled by restrictive practices.