A Sofa Manufacturer Currently Is Using 50 Workers and 30

question 30

Multiple Choice

A sofa manufacturer currently is using 50 workers and 30 machines to produce 5,000 sofas a day. The wage rate is $200 and the rental rate for a machine is $1,000. At these input levels, another worker adds 200 sofas, while another machine adds 500 sofas. If the firm uses 45 workers and 31 machines instead, then its

• A) cost will be unchanged, and its output will decrease by 500 units.
• B) cost will be unchanged, and its output will increase by 300 units.
• C) cost will be unchanged, and its output will increase by 500 units.
• D) output will be unchanged, and its cost will decrease by $800.
• E) none of the above

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Definitions:

Peripheral Nervous System

The portion of the nervous system that exists outside the brain and spinal cord, responsible for transmitting sensory information to the central nervous system and carrying motor commands to muscles and organs.

Pns

Abbreviation for Peripheral Nervous System, which includes nerves and ganglia outside of the brain and spinal cord.

Transient Ischemic Attack

Often called a mini-stroke, a transient episode of neurological dysfunction caused by the loss of blood flow to the brain, spinal cord, or retina, without acute infarction.

Abbreviation

A summarized form of a word or phrase.