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A Company Produces Two Products (A and B) Using Three

question 8

Essay

A company produces two products (A and B) using three resources (I, II, and III). Each product A requires 1 unit of resource I and 3 units of resource II and has a profit of $1. Each product B requires 2 units of resource I, 3 units of resource II, and 4 units of resource III and has a profit of $3. Resource I is constrained to 40 units maximum per day; resource II, 90 units; and resource III, 60 units.
What are the corner points of the feasible solution space?


Definitions:

Marginal Utility

The extra pleasure or benefit gained from the consumption of an additional unit of a product or service.

Total Utility

The overall satisfaction or benefit received by consuming a particular quantity of goods or services.

Marginal Utility

The change in satisfaction or utility gained by consuming an additional unit of a good or service.

Total Utility

The overall contentment derived from the consumption of a specific number of goods or services.

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