Consider the product structure tree shown below: 
With a beginning inventory of twenty for all components on level one, five for all components on level two, and zero for all components on level three and finished items, how many K's are needed to produce 25 product X's?
Definitions:
Long Run
A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes.
Marginal Revenue Curve
A graph that shows how marginal revenue varies as the quantity of output changes, typically downward sloping for firms in competitive markets.
Perfect Competitor
A market structure in which numerous small firms compete against each other with identical products, no single firm can influence the market price; all firms are price takers.
Marginal Revenue
Extra income gained by disposing of one additional unit of a good or service.
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