CAT 1991 Question 2

Question 2

Is it more profitable for Company M to produce Q?
I. Product R sells at a price four times that of Q
II. One unit of Q requires 2 units of labour, while one unit of R requires 5 units of labour. There is a no other constraint on production.

Solution

Taking only 1st statement into consideration, nothing certain can be said about product Q
Similarly with the only 2nd statement, we have only 1 information about product Q and R.
But considering both statements together we can say with sufficient information that product Q will be more beneficial than product R



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