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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)

Correct Answer:

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