A company sells two products with information as follows:
Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. If there are no constraints on production or sales of either product, then the company should emphasize sales of Product B.

Question

A company sells two products with information as follows:
  Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. If there are no constraints on production or sales of either product, then the company should emphasize sales of Product B.

Quizplus · Accepted Answer

Since it takes twice as long to make 1 unit of Product A as it does to make 1 unit of Product B, the company can produce and sell twice as many units of Product B in the same amount of time as Product A. Therefore, the company should emphasize sales of Product B to maximize revenue.

A Company Sells Two Products with Information as Follows