Suppose the feasible region has four corners, at these points: (0, 0), (8, 0), (0, 12), and (4, 8). For which of these profit formulas is the profit maximized, producing a mix of products at (4, 8)?
A) $5x + $2y
B) $2x + $5y
C) $5x + $3y
D) $2x + $4y

Question

Quizplus · Accepted Answer

To determine which profit formula will produce the maximum profit at the point (4, 8), we must evaluate each formula at that point and compare the results. With (x, y) = (4, 8):
A) $5(4) + $2(8) = $34
B) $2(4) + $5(8) = $42
C) $5(4) + $3(8) = $44
D) $2(4) + $4(8) = $36
Thus, the profit is maximized with formula C, which produces a profit of $44 at the point (4, 8).

Suppose the Feasible Region Has Four Corners, at These Points