At the End of 2018, Diatomic Company Implemented a New

question 14

Multiple Choice

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2018&2019\text { Output } & 45,000 & 54,000 \\\text { Output prices } & \$ 10 & \$ 10 \\\text { Materials (lbs.) } & 22,500 & 22,950 \\\text { Materials unit price } & \$ 3 & \$ 4 \\\text { Labor (hrs.) } & 18,000 & 16,875 \\\text { Labor rate per hour } & \$ 5 & \$ 5 \\\text { Power (kwh) } & 11,250 & 14,625 \\\text { Price per kwh } & \$ 2 & \$ 3\end{array}$ What is the partial operational measure for power for 2018?

• A)1.00
• B)1.60
• C)3.69
• D)4.00

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Definitions:

Combinations

A selection of items from a larger set where the order of selection does not matter.

Interaction Effect

An effect in statistical analysis indicating that the influence of one variable on the dependent variable differs across levels of another variable, demonstrating that the effect is not simply additive.

Parallel Lines

Straight lines in the same plane that do not intersect, regardless of how far they are extended.

Variables

Variables are characteristics or properties that can vary among individuals or over time within a study.