Find the Maximum Value of the Objective Function and Where

question 10

Multiple Choice

Find the maximum value of the objective function and where it occurs,subject to the indicated constraints. ​
Objective function:
​
Z = 9x + 5y
​
Constraints:
​
0 ≤ x ≤ 60
0 ≤ y ≤ 45
5x + 6y ≤ 420​ ​

• A)Maximum at (0,45): 225
• B)Maximum at (0,0): 0
• C)Maximum at (30,45): 495
• D)Maximum at (60,20): 640
• E)Maximum at (60,0): 540

Identify the differences between risky and risk-free investments and how to calculate risk premiums.

Understand the application of opportunity cost of capital in investment decisions.

Evaluate investment decisions based on the cost of capital and tax implications.

Understand and classify costs related to the production environment and how they impact financial statements.

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Definitions:

Next-best Activity

The alternative that must be forgone to engage in a particular activity, representing the opportunity cost of that decision.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Cycle

The business cycle refers to the fluctuations in economic activity and growth that an economy experiences over time, marked by periods of expansion and contraction.

Economic Activity

entails the production, distribution, and consumption of goods and services in an economy.