We Manufacturer Automobiles Given the Production Function Q = 5KL

question 59

Multiple Choice

We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor) . If we use K = 10 robots and L = 10 workers in order to produce q = 450 autos per shift, then we know that production is:

• A) technologically efficient.
• B) technologically inefficient.
• C) maximized.
• D) optimal.

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Definitions:

Total Cost Comparisons

The process of comparing the overall costs of different alternatives or options in order to make a decision that minimizes costs while achieving desired outcomes.

Preventive Maintenance

A plan that involves routine inspections, servicing, and keeping facilities in good repair to prevent failure.

Efficiency Level

A measurement of how well an entity uses its resources to achieve goals, often defined by the ratio of useful output to total input.

Theory Of Constraints

is a management philosophy focusing on identifying and managing the most critical limiting factor (constraint) that stands in the way of achieving a goal.