The Following Data Show the Total Output for a Firm

question 65

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50. $$\begin{array} { | c | c | } \hline \text { Labour per period } & \text { Total output per period } \\\hline 0 & 0 \\\hline 1 & 10 \\\hline 2 & 30 \\\hline 3 & 90 \\\hline 4 & 132 \\\hline 5 & 150 \\\hline\end{array}$$ TABLE 7- 3
-Refer to Table 7- 3.The average total cost when producing 150 units of output is approximately

• A)33 cents.
• B)40 cents.
• C)$1.50.
• D)80 cents.
• E)67 cents.

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Definitions:

Process Average

The mean value of a series of process measurements, indicating the central tendency of process performance.

Process Range

The difference between the maximum and minimum values in a set of data, reflecting the variability in a process.

Assignable Cause

A specific, identifiable source of variation in a process, distinct from random variation and often indicating a need for corrective action.

Inadequate Training

A situation where employees have not been provided sufficient or appropriate training to perform their jobs effectively.