A Firm with Two Factories,one in Michigan and One in Texas,has

question 62

Multiple Choice

A firm with two factories,one in Michigan and one in Texas,has decided that it should produce a total of 500 units of output in order to maximize profit.The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plants,the last unit of output produced in Michigan added $5 to total cost,while the last unit of output produced in Texas added $3 to total cost.If the firm produces 201 units in Michigan and 299 units in Texas instead:

• A)total cost will decrease $2
• B)profit will increase $2
• C)total cost will decrease $3
• D)both a and b
• E)none of the above

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Definitions:

Scatter Diagram

A graphical method used to display the relationship between two variables, typically to identify any correlation between them.

Work Shift

Scheduled periods of work for employees, often rotating among mornings, afternoons, and nights, to ensure continuous operation in industries such as healthcare, manufacturing, and service.

Service Quality

Refers to the evaluation of how well a delivered service matches the expectations of the customer.

Determinants

Factors or variables that decisively affect the nature or outcome of something.