The Following Linear Programming Problem Has Been Written to Plan

question 22

Multiple Choice

The following linear programming problem has been written to plan the production of two products.The company wants to maximize its profits.
X₁ = number of product 1 produced in each batch X₂ = number of product 2 produced in each batch
MAX: ^{150 X}₁ ^{+ 250 X}₂
Subject to: ^{2 X}₁ ^{+ 5 X}₂ ^{≤ 200 − resource 1}
3 X₁ + 7 X₂ ≤ 175 − resource 2 X₁,X₂ ≥ 0
How many units of resource 1 are consumed by each unit of product 1 produced?

• A)1
• B)2
• C)3
• D)5

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Definitions:

Fixed Cost

Expenses that do not change with the level of output production, such as rent, salaries, or equipment leases.

Output

The quantity of a product or service produced within a given period by a company, sector, or economy.

Long-Run Average Total Cost Curve

A graphical representation showing how the average total cost of production varies with output level in the long run, when all inputs are variable.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability to fully adjust to new market conditions.