A Company Produces Two Products,A and B

question 64

Multiple Choice

A company produces two products,A and B.A sells for $16 and has variable costs of $10.B sells for $12 and has variable costs of $8.Fixed Costs for the period are $35,000.Normally four units of A are sold for every two units of B units.How many units of B must be sold if the company expects profits of $50,000?

• A)15,947
• B)10,637
• C)5,313
• D)Cannot be determined

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Definitions:

Real Wages

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Principal-Agent Problem

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A professional who provides expert or professional advice in a particular area of expertise, such as business, to help organizations improve performance.

Monopsonist

A market condition where there is only one buyer for a product or service, giving them significant power over prices.