An Assembly Line Consists of 158 Tasks Grouped into 32

question 19

Multiple Choice

An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. The efficiency of this line is approximately

• A) 8%.
• B) 21%.
• C) 82%.
• D) 100%.
• E) 158%.

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Definitions:

Production Costs

The total expenses incurred in the manufacturing of a product, including labor, materials, and overhead costs.

Short-run Economic Profits

Profits earned by a firm in the short run, where not all inputs can be varied and some fixed costs are still incurred.

Competitive Industries

Sectors of the economy where businesses actively compete with each other to offer goods or services to consumers, often characterized by low barriers to entry and a high level of innovation.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, maximizing overall societal welfare.