A firm produces shaving cream and razor.The profit contribution of shaving cream is $2 per unit and that of razor is $4 per unit.The firm wishes to maximize total profit under certain constraints.What would be the slope (-razor/shaving cream,where represents the change in the variables)of the firm's objective function?
A)-4
B)-2
C)0.5
D)-0.5
E)0

Question

Quizplus · Accepted Answer

Since the profit contribution of shaving cream is $2 per unit and that of razor is $4 per unit, the slope of the objective function would be (-4/2) = -2. To maximize total profit, the firm should produce the units of shaving cream and razor that will result in the highest total profit, subject to the given constraints.

A Firm Produces Shaving Cream and Razor