Manders Manufacturing Corporation Uses the Following Model to Determine an Optimal

question 124

Multiple Choice

Manders Manufacturing Corporation uses the following model to determine an optimal short-term product mix for its two products, metal (M) and scrap metal (S) :
Max Z = $30M + $70S
Where: 3M + 2S ≤ 15
2M + 4S ≤ 18
The point where M = 2 and S = 3 would:

• A) Minimize total cost.
• B) Minimize total variable cost.
• C) Lie in a corner of a graphical representation of the model.
• D) Be a feasible point.
• E) Be the optimal solution point.

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Definitions:

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, commonly referred to as the market-clearing price.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Equilibrium Prices

The price at which the quantity of a good supplied equals the quantity demanded, balancing the market and clearing any surplus or shortage.

Seating Capacity

The number of people that can be accommodated in a space with seats, such as a theater, vehicle, or dining establishment.