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

question 105

Short Answer

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.
Is the production combination 10 A's and 10 B's feasible?

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Definitions:

Farm Employment

Refers to labor or jobs related to agricultural activities, including cultivation, livestock management, and crop production.

Export Demand

Refers to the desire or requirement for a country's goods or services by another country.

American Agriculture

The sector of the US economy that deals with the production, processing, and distribution of food, fiber, and products derived from plants and animals.

Labor Force

Persons 16 years of age and older who are not in institutions and who are employed or are unemployed and seeking work.