Write the Resource Constraints for This Situation: Kim and Lynn

question 64

Multiple Choice

Write the resource constraints for this situation: Kim and Lynn produce tables (x) and chairs (y) . Each piece is assembled, sanded, and stained. A table requires two hours to assemble, three hours to sand, and three hours to stain. A chair requires four hours to assemble, two hours to sand, and three hours to stain. The profit earned on each table is $20 and on each chair is $12. Together Kim and Lynn spend at most 16 hours assembling, 10 hours sanding, and 13 hours staining.

• A) 2x + 4y  16, 3 x + 2y  10, 3x + 3y  13, x  0, y  0
• B) 2x + 3y + 3z  20, 4x + 2y + 3z  12, x  0, y  0, z  0
• C) 16x + 10y + 13z  0, 2x + 3y + 3z  20, 4x + 2y + 3z  12, x  0, y  0, z  0
• D) 8x + 4y  16, (10/3) x + 5y  10, (13/3)x + (13/3)y  13, x  0, y  0

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Definitions:

Price Takers

Firms or individuals who accept the market price as given and have no influence over it.

Differentiated Products

Goods that are distinguished from one another by quality, design, branding, and other features that make them unique to consumers.

Easy Entry And Exit

A market characteristic where firms can freely enter or leave the industry without substantial barriers.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.