Refer to the Information Provided in Figure 12

question 189

Multiple Choice

Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. Figure 12.5
-Refer to Figure 12.5. Hula hoops are produced in a perfectly competitive market. This hula hoop firm is currently producing and selling 100 hula hoops per week. Which of the following is true?

• A) Society would be better off if more hula hoops were produced because at the current level of production price is greater than marginal cost.
• B) Society would be better off if fewer hula hoops were produced because if this firm reduced its production, its profits would increase.
• C) Hula hoop production is at the efficient level because ATC is minimized.
• D) Fewer resources should be devoted to hula hoop production because ATC is less than price.

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Definitions:

Operating Variables

Factors that can be adjusted or varied during the operation of a machine, system, or process, affecting its performance or outcome.

Fast Adaptive Mode

High-speed processing algorithms; Allison uses this term to describe an operating condition in which large changes are made to initial shift conditions to adjust for major system tolerances such as solenoid-to-solenoid, main pressure, and clutch-to-clutch variations. A new or newly rebuilt transmission should be programmed to operate in fast adaptive mode.

Close-ratio Gearing

A transmission design where the gear ratios are closer together, allowing the engine to operate more consistently near its optimal RPM for performance.

Standard Gear Ratios

The predefined set of gear ratios used in transmissions to optimize vehicle performance and fuel efficiency under normal driving conditions.