Lie around furniture manufactures two products: futons and recliners. the following data are available:
futons recliners
sales price $550 $740
variable costs $380 $375

the company can manufacture 4 futons per machine hour and 2 recliner per machine hour. the company's production capacity is 12,600 machine hours per month.
to maximize profits, what product and how many units should the company produce in a month?
a. 25,200 futons and 8 recliners
b. 50,400 futons and 25,200 recliners
c. 50,400 futons
d. 25,200 recliners

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.