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Question 3 (1 point) A firm produces two products: A and B with demand of 100 units each. The firm faces a single resource constraint
Question 3 (1 point) A firm produces two products: A and B with demand of 100 units each. The firm faces a single resource constraint - machine hours. Each unit of A provides a contribution margin of $5 and requires 1 machine hour whereas each unit of B provides a contribution margin of $8 and requires 2 machine hours. The optimal production plan is to produce 100 units of A and 50 units of B. If the firm can re- optimize its production plan, the effect on the firm's total contribution if firm increases machine hours by 20 (at zero additional cost) is zero. True False
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