Let M Be the Number of Units to Make and Let

question 29

Multiple Choice

Let M be the number of units to make and let B be the number of units to buy.If it costs $2 to make a unit and $3 to buy a unit,and 4000 units are needed,the objective function is

• A)Max 2M + 3B.
• B)Min 4000 (M + B).
• C)Max 8000M + 12,000B.
• D)Min 2M + 3B.

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, and firms can adjust all inputs.

Efficient Output

The level of production that maximizes a firm's profits while minimizing its costs, often associated with where marginal cost equals marginal revenue.

Lowest Price

The minimum cost at which a product or service can be bought, often sought after in competitive markets.

Total Profits

The final financial gain from a business operation after subtracting all expenses, taxes, and costs from total revenues.