Suppose a Sausage Company Makes Two Different Kinds of Hot

question 75

Multiple Choice

Suppose a sausage company makes two different kinds of hot dogs, regular and all beef. Each pound of all-beef hot dogs requires 0.75 lb of beef and 0.2 lb of spices, and each pound of regular hot dogs requires 0.18 lb of beef, 0.3 lb of pork, and 0.2 lb of spices. Suppliers can deliver at most 982.5 lb of beef, at most 600 lb of pork, and at least 490 lb of spices. If the profit is $0.60 on each pound of all-beef hot dogs and $0.40 on each pound of regular hot dogs, how many pounds of each should be produced to obtain maximum profit? What is the maximum profit?

• A)Maxomize profit is $1,300 with 840 lbs of all - beef and 1,990 lbs of regular hot dogs.
• B)Maxomize profit is $1,344 with 840 lbs of all - beef and 2,100 lbs of regular hot dogs.
• C)Maxomize profit is $1,298 with 830 lbs of all - beef and 2,000 lbs of regular hot dogs.
• D)Maxomize profit is $1,532 with 2,000 lbs of all - beef and 830 lbs of regular hot dogs.
• E)Maxomize profit is $1,530 with 1,990 lbs of all - beef and 840 lbs of regular hot dogs.

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Definitions:

Ordinary Goods

Goods for which demand increases as consumer income increases and decreases as consumer income decreases, opposite to inferior goods.

Consumer Equilibrium

A scenario in which a consumer has distributed their income to achieve the greatest satisfaction, considering the prices of goods and services.

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford to purchase at given prices within their income level.

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.