Table 7.10 Four Possible Options Exist to Crash Activities: Crash a by Crash

question 138

Multiple Choice

Table 7.10

Four possible options exist to crash activities: crash A by one week at a cost of $6,000; crash C by two weeks at a cost of $15,000; crash E by one week at a cost of $2,000; and crash I one week at a cost of $7,000. What is the maximum amount of additional profit that can be made by crashing an option (or options) ?
A) less than or equal to $4,000
B) greater than $4,000 but less than or equal to $8,000
C) greater than $8,000 but less than or equal to $12,000
D) greater than $12,000
-If a project has exactly one critical path, which of the following statements is True?

• A) less than or equal to $4,000
• B) greater than $4,000 but less than or equal to $8,000
• C) greater than $8,000 but less than or equal to $12,000
• D) greater than $12,000
• -If a project has exactly one critical path, which of the following statements is True?
• A) Crashing an activity on the critical path will always result in an increase in total project profits.
• B) Activities on the critical path cannot be crashed.
• C) Crashing an activity on the critical path will always result in a reduced total project completion time.
• D) The best schedule is one in which all activities are crashed as much as possible.

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Definitions:

Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good supplied.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied responds infinitely at a particular price level but is zero at any other price level.

Long Run

A period in economics where all factors of production and costs are variable, allowing for full adjustment to changes.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices, which can fluctuate based on a variety of factors including income and preferences.