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

To find the combination of investments that falls within the budget constraint of $220,000, we need to add up the costs of each investment.

- Saturn costs $150,000 
- Jupiter costs $80,000 
- Mars costs $90,000 
- Venus costs $60,000

If we choose Saturn and any other investment, we will exceed the budget constraint. Therefore, we can eliminate answer choices A and D.

The combination of Jupiter and Mars costs $170,000, which exceeds the budget constraint.

The combination of Mars and Venus, however, costs $150,000 ($90,000 + $60,000), which is within the budget constraint. Therefore, the answer is C) Mars and Venus.

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