Assume That an Appliance Manufacturer Is Employing Variable Resources X

question 3

Multiple Choice

Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60 respectively.Resource X can be hired at $50 per unit and resource Y at $20 per unit.The firm:

• A) should hire more of both X and Y.
• B) should hire more of Y and less of X.
• C) is producing with the least-costly combination of X and Y but could increase its profits by employing more of X and less of Y.
• D) is using the least-cost combination of X and Y but could increase its profits by employing less of both X and Y.

---

Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of electronic devices, machines, and software.

Manufacturing

The industrial process of converting raw materials into finished goods through the use of labor, machinery, tools, and chemical processing.

Health Care

The maintenance or improvement of health via prevention, diagnosis, treatment, recovery, or cure of diseases, injuries, and other physical or mental impairments in people.

Transportation Industry

Comprises companies that move people or goods, by land, sea, or air, from one location to another, including logistics and infrastructure support.