A Company Sells Two Products with Information as Follows

question 108

True/False

A company sells two products with information as follows:

Products are made by machine.Five units of product A can be made with five machine hours and four units of product B can be made with 0.6 machine hour.If there are no constraints on production or sales of either product,then the company should emphasize sales of product B.

Understand the structure and validity of a disjunctive syllogism.

Identify the necessary components of a disjunctive proposition.

Recognize valid and invalid conclusions in disjunctive syllogisms and hypothetical propositions.

Define and apply the concepts of antecedent and consequent in hypothetical propositions.

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Definitions:

Expected Utility

The sum of the utilities associated with all possible outcomes, weighted by the probability that each outcome will occur.

Utility

The satisfaction or benefit derived by consumers from consuming a good or service.

Expected Utility

A concept in economics that represents the sum of utilities associated with all possible outcomes, weighted by the probability of each outcome.

Utility

A measure of the satisfaction or happiness that consumers get from consuming goods or services.