A Productivity Model at the Handy Gadget Company Is $P = 13,000 x ^ { 0.1 } y ^ { 0.9 }$

question 26

Multiple Choice

A productivity model at the Handy Gadget Company is $P = 13,000 x ^ { 0.1 } y ^ { 0.9 }$
Where P is the number of gadgets the company turns out per month, x is the number of employees at the company, and y is the monthly operating budget in thousands of dollars. Because the company hires part - time workers, it uses anywhere between 44 and 54 workers each month, and its operating budget varies from $12,000 to $14,000 per month. What is the average of the possible numbers gadgets it can turn out per month (Round the answer to the nearest 1,000 gadgets.)

• A)8,000 gadgets
• B) 61,000 gadgets
• C) 193,000 gadgets
• D) 3,000 gadgets

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Definitions:

Marginal Costs

The expense incurred from manufacturing an extra unit of a product or service.

Average Total Costs

The total costs (fixed and variable) of production divided by the quantity of output produced.

Average Fixed Costs

The total fixed costs divided by the quantity of output produced, indicating the cost per unit that does not change with output level.

Average Total Costs

The cost of producing each unit, calculated by dividing the entire production cost by the total number of units made.