Write the Resource Constraints for This Situation: a Small Stereo

question 58

Multiple Choice

Write the resource constraints for this situation: A small stereo manufacturer makes a receiver and a CD player. Each receiver (x) takes eight hours to assemble and eight hours to test and ship. Each CD player (y) takes 15 hours to assemble and two hours to test and ship. The profit on each receiver is $30 and the profit on each CD player is $50. There are 160 hours available in the assembly department and 22 hours available in the testing and shipping department.

• A) 8x + 1y  30, 15x + 2y  50, x  0, y  0
• B) 8x + 1y  160, 15x + 2y  22, x  0, y  0
• C) 8x + 15y  30, 8x + 2y  50, x  0, y  0
• D) 8x + 15y  160, 8x + 2y  22, x  0, y  0

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Definitions:

Marginal Revenue Product Curve

A graphical representation depicting how the extra revenue generated from hiring an additional unit of a resource varies.

Normal Good

A good for which demand increases as the income of the individual increases, showing a direct relationship between income and demand.

Auto Workers

Employees in the automotive industry who are involved in the manufacturing, designing, and maintenance of vehicles.

Marginal Revenue Product

The supplementary revenue created by the addition of one unit of a production input.