The Production Planner for Fine Coffees, Inc

question 65

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 objective function?

• A) P = A + 2B.
• B) P = 12A + 8B.
• C) P = 2A + B.
• D) P = 8A + 12B.
• E) P = 4A + 8B.

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Definitions:

Positive Statement

An objective statement based on fact that can be tested and validated, often used in the description of economic behaviors.

Economic Policy

Strategies and actions taken by the government or regulatory bodies to influence the economy, including fiscal, monetary, and trade policies.

Societal Goal

A long-term objective that benefits the larger community, aiming at improvements in social well-being, economic prosperity, and environmental sustainability.

Microeconomic Statement

An assertion or observation that pertains to the individual units of the economy, such as households or businesses, rather than the economy as a whole.