ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Toys Insane Inc. produces two goods: Glibber Gems (G) and Blubber Bricks (B). In order to produce Glibber Gems and Blubber Bricks, three input factors are necessary: Slime (S), Tran (T), and Gorilla Mucus (M). The following table summarizes how many input factors are necessary to produce one unit of each good and how many input factors are available in total:
|
|
Glibber Gems |
Blubber Bricks |
Total Units Available |
|
Slime Units |
1 |
2 |
14 |
|
Tran Units |
3 |
4 |
36 |
|
Gorilla Mucus Units |
9 |
6 |
90 |
Below graph shows four lines: One for each constraint and an isoprofit line.
1: The slime constraint has which color?
| a |
Red |
| b |
Blue |
| c |
Green |
| d |
Black |
2: The tran constraint has which color?
| a |
Red |
| b |
Blue |
| c |
Green |
| d |
Black |
3: The gorilla mucus constraint has which color?
| a |
Blue |
| b |
Red |
| c |
Black |
| d |
Green |
4: The isoprofit line has which color?
| a |
Red |
| b |
Blue |
| c |
Green |
| d |
Black |
5: The slime constraint is represented by which equation?
| a |
G<=14-2B |
| b |
G<=10-1B |
| c |
G<=12-4/3B |
| d |
G<=10-2/3B |
6: The tran constraint is represented by which equation?
| a |
G<=10-1B |
| b |
G<=12-4/3B |
| c |
G<=14-2B |
| d |
G<=10-2/3B |
7: The gorilla mucus constraint is represented by which equation?
| a |
G<=14-2B |
| b |
G<=12-4/3B |
| c |
G<=10-2/3B |
| d |
G<=10-1B |
8:The isoprofit line is represented by which equation?
| a |
G=14-2B |
| b |
G=12-4/3B |
| c |
G=10-2/3B |
| d |
G=10-1B |
9: Given the constraints, what can be said about the combination of G=6 and B=6?
| a |
It is within the area of feasible production |
| b |
It is the profit maximizing production mix |
| c |
Both a. and b. |
| d |
None of the above |
10: Assuming that the unit profits for Glibber Gems and Blubber Bricks are each $5, what will be the profit maximizing production mix?
| a |
G=3, B=8 |
| b |
G=6, B=6 |
| c |
G=8, B=3 |
| d |
G=4, B=6 |
Transcribed Image Text:Glibber Gems (G)
20
19
18
17
16
15
14
13
12
11
10
9
8
7
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5
Сл
st
4
3
2
1
1 2 3
4 5 6 7 8 9 10 11 12
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17 18 19 20
Blubber Bricks (B)
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