TicToc Produces Product a and Product B

question 10

Multiple Choice

TicToc produces product A and product B.These products have the following resource requirements. The firm has a weekly production budget of $3000 and a maximum of 1000 hours of labor per week.Each A produced generates $35.00 in profit for the company.Each B produced generates $25.00 in profit for the company.If the company produces 100 units of A and 200 units of B the amount of slack (in hours) for labor is

• A)0 hours.
• B)14 hours.
• C)66 hours.
• D)80 hours.

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Definitions:

Consumer Price Index

A benchmark for assessing the weighted average expenses of various consumer items and services like food, healthcare, and transportation.

Substitution Bias

A bias in measuring the cost of living or inflation that arises from the substitution of relatively cheaper goods for more expensive ones by consumers.

Basket of Goods

A fixed set of products and services, used to monitor changes in price levels over time to measure inflation.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, reflecting a reduction in purchasing power.