A Small Company Makes Only Two Products with the Following

question 50

Multiple Choice

A small company makes only two products with the following production constraints representing two machines and their maximum availability: If the profit equation is Z = $4X + $2Y, the maximum possible profit is:

• A)$20
• B)$21
• C)$18
• D)$24
• E)$14

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Definitions:

Point Q

A hypothetical point used in economic models or graphs to represent a specific position in terms of quantity or quality.

Economy

A framework for creating, distributing, and utilizing goods and services in a specific geographic region.

Economic Growth

A boost in the purchasing power adjusted market value of goods and services an economy creates over time.

Long Run

A period in economics sufficient for all markets to adjust, including production facilities and labor.