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A Firm Makes Two Products, Y and Z

Question 55

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, the appropriate objective function would be


A) maximize $40Y = $25Z.
B) maximize $40Y + $25Z.
C) maximize $30Y + $20Z.
D) maximize 0.25Y + 0.20Z.
E) maximize $20Y + $50Z.

Correct Answer:

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