Solved

A Farmer Was Interest in Determining How Many Grasshoppers Were

question 40

Multiple Choice

A farmer was interest in determining how many grasshoppers were in his field. He knows that the distributionof grasshoppers may not be normally distributed in his field due to growing conditions. As he drives histractor down each row he counts how many grasshoppers he sees flying away. After several rows he figuresthe mean number of flights to be 57 with a standard deviation of 12. What is the probability of the farmer willcount 52 or fewer flights on average in the next 40 rows down which he drives his tractor?

Distinguish between the short-run application of the law of diminishing returns and its implications.

Relate the concepts of marginal and average products to decision-making in production.

Understand how the law of diminishing marginal returns impacts total production.

Understand the concept and applications of satisficing in decision making.

Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of goods sold.

Absorption Costing

In this method of accounting, the price of manufacturing a product is calculated by summing the costs of direct materials, direct labor, and all manufacturing overheads, variable and fixed alike.

Fixed Manufacturing Overhead

The total of all costs related to manufacturing that do not change with the level of production, such as salaries of managers and rent of the factory.

Divisional Segment Margin

The profit margin for a specific division or segment of a company, calculated by subtracting direct and allocated expenses from segment revenues.