The Production Manager for Beer Etc

question 67

Multiple Choice

The production manager for Beer etc. produces two kinds of beer: light (L) and dark (D) . Two resources used to produce beer are malt and wheat. The manager can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week, respectively. Each bottle of light beer requires 12 oz of malt and 4 oz of wheat, while a bottle of dark beer uses 8 oz of malt and 8 oz of wheat. Profits for light beer are $2 per bottle, and profits for dark beer are $1 per bottle.
-Which of the following is not a feasible solution?

• A) 0 L and 0 D
• B) 0 L and 400 D
• C) 200 L and 300 D
• D) 300 L and 200 D

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit.

Total Cost

The sum of all expenses incurred in the production of a good or service, including both fixed and variable costs.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.