If a Company Is Trying to Maximize Profit While Selling

question 19

Multiple Choice

If a company is trying to maximize profit while selling two products,Bigpods with $10 profit and Smallpods with $7 profit,and if 100 assembly hours are split equally between the two products and one hour assembly is required for each pod,what is the maximum profit?

• A)$17
• B)$700
• C)$850
• D)$1000
• E)$1700

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Definitions:

Bundling

A marketing strategy that involves offering several products or services for sale as one combined product or service package.

Marginal Cost

The added cost of producing one additional unit of output.

Marginal Revenue

The incremental income achieved by dispensing one more unit of a good or service.

Full-Fare Customers

Passengers who pay the full, un-discounted price for their tickets, typically providing higher revenue per seat for service providers.