Use the prompt below to answer questions 11 – 13. Assume that Mackenzie Enterprises sells two products, X and Y. Its monthly profit from selling both X and Y is given by:

Calculate income elasticity at market equilibrium and when Y=32.42.

Suppose the graph below represents indifference curves for consumption bundles containing quantities of goods A and B:   Which of the following is correct regarding marginal utility of good B when holding the quantity of good A in the consumption bundle constant and increasing the quantity of good B by one unit?

PART I (10 multiple choice questions, 30 points total)

Convexity of indifference curves implies that consumers are willing to

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Skill C7. Which of the following statements accurately describes how increasing variability affects manufacturing system performance?   (There may be zero, one , or more than one true statement.)

Skill C2.  Determine the parameters of the board fab line in Skill C1 (use minutes as the time unit).  

Skill B5. What is the SCV of the departure process at workstation described in Skill B4?

Skill C6. If the board fab line in Skill C1 were running with TH = 0.8 boards per hour and CT = 5 hours, would this production line’s performance be good or bad?  Why?  Choose one of the following: