A Firm Makes Two Products, Y and Z

question 6

Multiple Choice

A firm makes two products, Y and Z. Each unit of Y costs $10 and sells for $40. Each unit of Z costs $5 and sells for $25. If the firm's goal were to maximize profit, what would be the appropriate objective function?

• A) Maximize profit = $40Y = $25Z
• B) Maximize profit = $40Y + $25Z
• C) Maximize profit = $30Y + $20Z
• D) Maximize profit = 0.25Y + 0.20Z
• E) Maximize profit = $50(Y + Z)

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Definitions:

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Bundle of nerves that runs the length of a body.

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