What Combination of a and B Will Yield the Optimum

question 68

Multiple Choice

What combination of a and b will yield the optimum for this problem? Maximize $6a + $15b,subject to (1) 4a + 2b ≤ 12 and (2) 5a + 2b ≤ 20 and (3) x,y ≥ 0.

• A)a = 0,b = 0
• B)a = 3,b = 3
• C)a = 0,b = 6
• D)a = 6,b = 0
• E)a = 0,b = 10

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, it is the cost of producing one more unit of a good.

Output

The quantity of goods or services produced by a firm or economy.

Total Revenue Curve

A graphical representation that shows how total revenue changes as the quantity sold of a good or service changes, holding all other factors constant.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.