The Assembly Time for a Product Is Uniformly Distributed Between

question 27

Multiple Choice

The assembly time for a product is uniformly distributed between 6 and 10 minutes. The standard deviation of assembly time (in minutes) is approximately _____.

• A) .33
• B) .13
• C) 16
• D) None of the answers is correct.

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Definitions:

Diseconomies of Scale

This phenomenon occurs when a firm's production costs per unit increase as it produces more, due to inefficiencies that arise from scaling up operations.

Economic Profit

The economic result derived from subtracting a business's entire expenses, both explicit and implicit, from its total incoming funds.

Product Price

The amount of money required to purchase a good or service, determined by factors like production cost, market demand, and competition.

Optimal Output

The level of production at which a company can achieve the highest possible profit, balancing costs and revenues effectively.