The Total Output from a Production System in One Day

question 9

Multiple Choice

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours.Using the appropriate productivity measure, what is the resulting productivity ratio?

• A)1.000
• B)1.428
• C)0.700
• D)0.411
• E)None of these

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Definitions:

Socially Optimal

A state or outcome of an economic or social process that maximizes societal welfare, taking into account all costs and benefits to society.

Fair-Return

A principle whereby regulated entities are allowed to set prices that cover their costs and provide a reasonable profit.

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers based on various factors.

Elastic

In economics, it describes a situation where the demand or supply for a good changes significantly in response to price changes.