If There Is a Maximum of 4,000 Hours of Labor

question 39

Multiple Choice

If there is a maximum of 4,000 hours of labor available per month and 300 ping-pong balls (x₁) or 125 wiffle balls (x₂) can be produced per hour of labor,which of the following constraints reflects this situation?

• A)300x₁ + 125x₂ > 4,000
• B)300x₁ + 125x₂ < 4,000
• C)425(x₁ + x₂)< 4,000
• D)300x₁ + 125x₂ = 4,000

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Definitions:

Economic Efficiency

A situation in which resources are allocated in the most beneficial way from the perspective of society, where no one can be made better off without making someone else worse off.

Benefits

Advantages or financial assistance received from employment, government, or insurance, aimed at improving individuals’ well-being.

Costs

The expenses incurred in the production or acquisition of goods and services, including both direct and indirect expenditures.

Inelastic Demand

A situation in which the percentage change in quantity demanded of a good is less than the percentage change in price, indicating low sensitivity to price changes.