You Operate a Car Detailing Business with a Fixed Amount

question 39

Multiple Choice

You operate a car detailing business with a fixed amount of machinery (capital) , but you have recently altered the number of workers that you employ per hour. As you increased the number of employees hired per hour from three to five, your total output increased by 5 cars to 15 cars per hour. What is the average product of labor at the new levels of labor?

• A) AP = 3 cars per worker
• B) AP = 5 cars per worker
• C) AP = 4 cars per worker
• D) We do not have enough information to answer this question.

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Definitions:

Planning

The process of setting goals, defining strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Priority Oriented

An approach or methodology focused on identifying, organizing, and addressing tasks or objectives based on their importance or urgency.

Results Oriented

A focus on the outcomes and achievements rather than the processes used to get there, emphasizing efficiency and effectiveness.

Sales Performance

A measurement that evaluates the efficiency and success of a sales team or individual in meeting revenue targets.