The Production Planner for Fine Coffees, Inc

question 46

Multiple Choice

The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British (B) . He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. The goal of Fine Coffees, Inc. is to maximize profits.
What is the constraint for Colombian beans?

• A) A + 2B ≤ 4,800.
• B) 12A + 8B ≤ 4,800.
• C) 2A + B ≤ 4,800.
• D) 8A + 12B ≤ 4,800.
• E) 4A + 8B ≤ 4,800.

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Definitions:

Resource Endowments

The natural resources, labor force, capital, and technology that a country possesses, which influence its economic potential.

Trade Gains

The benefits that countries receive from engaging in international trade, often leading to more efficient production and a greater variety of goods and services.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing an action.

Tons of Rice

A unit of measure indicating the quantity of rice, often used in trading and economic analysis related to agricultural commodities.