Refer to the Following

question 38

Multiple Choice

Refer to the following:
The price of capital (r) is $20.

-At the optimal combination of inputs for producing 14,000 units of output, what is the marginal rate of technical substitution?

• A) 2.5
• B) 0.67
• C) 1.5
• D) 0.80
• E) impossible to tell from the graph

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Definitions:

Delivery Cycle Time

The total time taken from the receipt of a customer order to the delivery of the product, reflecting the efficiency of order fulfillment.

Fill Orders

The process of completing customer orders by preparing and shipping the requested products.

Throughput Time

The total time required to produce a product from start to finish, including processing, inspection, and delivery times.

Fill Orders

The process of completing customer orders by preparing and dispatching the requested goods.