A firm has set a budget constraint of $220,000 on new investments, which cannot be exceeded.Given the following independent investments, which one of the following combinations is part of the investment opportunity schedule?

Question

Quizplus · Accepted Answer

The budget constraint of $220,000 limits the total amount that can be invested. Looking at the investment options, Mars costs $80,000 and Venus costs $100,000. Together, their total cost is $180,000, which leaves $40,000 for another investment. None of the other options can be added to this combination without exceeding the budget constraint. Therefore, the correct combination is Mars and Venus (option C).

A Firm Has Set a Budget Constraint of $220,000 on New