QRS CorpIs Designing a Product Layout for a New Product

question 160

Multiple Choice

QRS Corp.is designing a product layout for a new product.They plan to use this production line ten hours a day in order to meet forecasted demand of 900 units per day.The following table describes the tasks necessary to produce this product: For output to equal forecasted demand,what will be the second task performed at the second workstation of the production line that uses the fewest number of stations?

• A)A
• B)B
• C)C
• D)D
• E)E

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Wages

Payments made to employees for their labor, typically calculated on an hourly, daily, or piecework basis.

Economic Rent

The excess payment made to a factor of production over and above what would be needed to keep it in its current use.

Marginal Revenue Product

The additional revenue generated from employing one more unit of input, such as labor or capital.