At the Beginning of 2018, Vibgyor Company Installed a Just-In-Time

question 4

Multiple Choice

At the beginning of 2018, Vibgyor Company installed a just-in-time (JIT) purchasing and manufacturing system. The following information has been gathered about one of the company's products: $\begin{array}{lr}\text { Theoretical annual capacity } & 4,200 \text { units } \\\text { Actual production } & 1,600 \text { units } \\\text { Production hours available } & 600 \text { hours } \\\text { Actual conversion cost per hour } & \$ 15\end{array}$
The theoretical velocity per hour is:

• A)9 units.
• B)3 units.
• C)2 units.
• D)7 units.

---

Definitions:

Optimal Choice Point

In decision theory and economics, the point at which the decision maker achieves the best possible outcome under given constraints.

Budget Constraint

The limitations on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Indifference Curve

A graph showing combinations of goods among which a consumer is indifferent, meaning they give the consumer the same level of satisfaction.

Indifference Curves

Graphical representations in microeconomics showing different combinations of goods or services between which a consumer is indifferent.