refer to the following:
A firm produces two products (X and Y) that are substitutes in production; both products are produced on an assembly line that operates only 18 hours per day. The firm faces the following demand and "production" functions:

-In order to maximize profit, how should the firm allocate the 18 hours of assembly line time between the two products?
A) use 10 hours to produce X, 8 hours to produce Y
B) use 11.4 hours to produce X, 6.6 hours to produce Y
C) use 12 hours to produce X, 6 hours to produce Y
D) use 15 hours to produce X, 3 hours to produce Y None of the above.

Question

refer to the following:
A firm produces two products (X and Y) that are substitutes in production; both products are produced on an assembly line that operates only 18 hours per day. The firm faces the following demand and "production" functions:
 
-In order to maximize profit, how should the firm allocate the 18 hours of assembly line time between the two products?
A) use 10 hours to produce X, 8 hours to produce Y 
B) use 11.4 hours to produce X, 6.6 hours to produce Y 
C) use 12 hours to produce X, 6 hours to produce Y 
D) use 15 hours to produce X, 3 hours to produce Y None of the above.

Quizplus · Accepted Answer

The Answer is D

Refer to the Following