Refer to the Information Provided in Table 8 $\text {Number of}$

question 207

Multiple Choice

Refer to the information provided in Table 8.2 below to answer the question(s) that follow.
Table 8.2 $\text {Number of}$

$\begin{array}{llllllll}\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\\\hline0 & & & & &100 & \\1 & & 50 & & & \\2 & & & & & &&95 \\3 & & & 46.67 & & \\4 & & & & &300 & \\5 & 270 & & &\\\hline\end{array}$

-Refer to Table 8.2. Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price for earrings is $60. To maximize profits Sherry should produce ________ pairs of earrings.

• A) two
• B) three
• C) four
• D) five

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Definitions:

Deming Approach

A continuous quality improvement model consisting of a logical sequence of four key stages: Plan, Do, Check, Act (PDCA).

Profound Knowledge

Deep understanding and insight into the complexities and interdependencies in fields or areas of study.

Fishbone Diagram

A visual tool used for identifying and analyzing the causes of problems or defects, structured in a way that resembles the skeleton of a fish.

Quality Problem

A situation or issue that detracts from the quality or performance of a product or service.