A Company Makes Two Products, X₁ and X₂

question 4

Multiple Choice

A company makes two products, X₁ and X₂. They require at least 20 of each be produced. Which set of lower bound constraints reflect this requirement?

• A) X₁ ≥ 20, X₂ ≥ 20
• B) X₁ + X₂ ≥ 20
• C) X₁ + X₂ ≥ 40
• D) X₁ ≥ 20, X₂ ≥ 20, X₁ + X₂ ≤ 40

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Definitions:

MR

Marginal Revenue, which refers to the additional income generated from selling one more unit of a good or service.

Variable Costs

Costs that change in proportion to the level of output produced.

Pure Monopolist

A single seller in a market who has exclusive control over a product or service, facing no competition.

Output

The aggregate quantity of products or services generated by a company, sector, or economic system within a specified timeframe.