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

question 71

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.
What is the optimum production combination and its profits?

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Definitions:

Marketer-Controlled Sources

Marketer-controlled sources refer to the channels and content fully controlled by the marketer, such as company websites, press releases, and branded advertising materials, used to communicate with the audience.

Information Search

The process consumers undertake to gather information about products or services to make informed purchasing decisions.

Consumer Demand

The desire and willingness of consumers to purchase goods or services at a given price, which influences market dynamics and business decisions.

Wants

Desires or wishes that are not essential for basic survival but are sought for pleasure, comfort, or luxury.