Suppose That the Total Cost of Producing 1 Unit of a Product

question 69

Multiple Choice

Suppose that the total cost of producing 1 unit of a product is given by dollars, where x represents the cost per pound of raw materials and y represents the hourly rate for labor. The present cost for raw materials is $11 per pound and the present hourly rate for labor is $24. How will an increase of $1 per hour in labor costs affect the total cost? Round your answer to the nearest cent. ​

• A)The total cost will increase approximately $75.28 if labor costs increase to $25 per hour.
• B)The total cost will increase approximately $77.41 if labor costs increase to $25 per hour.
• C)The total cost will increase approximately $133.36 if labor costs increase to $25 per hour.
• D)The total cost will increase approximately $25.78 if labor costs increase to $25 per hour.
• E)The total cost will increase approximately $27.95 if labor costs increase to $25 per hour.

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Definitions:

Fixed-Ratio

A schedule of reinforcement where a response is rewarded after a set number of responses.

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses.

Fixed-Interval

In operant conditioning, a fixed-interval schedule is a reinforcement pattern where a response is rewarded only after a specified amount of time has elapsed, leading to a response pattern where actions are more frequent as the time for reward approaches.

Punishment

An event that decreases the behavior it follows.