Assume That an Assembly Line Has Three Tasks That Must

question 10

Multiple Choice

Assume that an assembly line has three tasks that must be completed (in order, A, B, and C) . The tasks have processing times of 9, 9, and 11 minutes per unit, respectively. If the assembly operates for 400 minutes per day with a desired output of 70 units per day, what is minimum number of workstations?

• A) 4
• B) 6
• C) 8
• D) Cannot be determined from the information given

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Definitions:

Competitive Industry

An industry where numerous firms compete against each other to sell similar products or services.

Output Level

The quantity of goods or services produced by a company, industry, or economic sector within a given time period.

Economic Rents

Earnings in excess of the minimum necessary to keep a factor of production in its current use, often associated with restricted supply or monopoly power.

Imperfectly Competitive

A market structure where individual firms have some control over the price of their products due to a lack of perfect competition.