An Assembly Line Consists of Three Workstations (WS)with Each Station's

question 28

Multiple Choice

An assembly line consists of three workstations (WS) with each station's activity time as shown. When fully operational the maximum output for this line in 8 hours of production time would be

• A)40 units.
• B)96 units.
• C)120 units.
• D)160 units.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production increases.

Average Total Cost (ATC)

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.

Marginal Cost (MC)

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Marginal Revenue (MR)

The enhanced earnings from distributing an additional unit of a good or service.