A Manager Is Interested in Deciding Production Quantities for Products

question 69

Multiple Choice

A manager is interested in deciding production quantities for products A,B,and C.He has an inventory of 20 tons each of raw materials 1,2,3,and 4 that are used in the production of products A,B,and C.He can further assume that he can sell all of what he makes.Which of the following statements is CORRECT?

• A)The manager has four decision variables.
• B)The manager has three constraints.
• C)The manager has three decision variables.
• D)The manager can solve this problem graphically.

---

Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost than competitors.

Crude Oil

An unrefined, naturally sourced petroleum compound made of hydrocarbon collections and different organic elements.

Comparative Advantage

The ability of an individual or group to produce a good or service at a lower opportunity cost than another.

Tractors

Vehicles specially designed to deliver high torque at low speeds, used mainly in the farming industry for agricultural purposes.