Use the Following to Answer Questions

question 257

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost of $2 and no fixed cost. If industry output is 300 gadgets produced by Margaret and 200 gadgets produced by Ray and if Ray decides to increase output by 100, Margaret's profit will be _____, and Ray's profit will be _____.

• A) $1,750; $1,250
• B) $1,250; $1,250
• C) $1,400; $1,000
• D) $600; $600

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Definitions:

Forging Process

The forging process is a metalworking technique involving the shaping of metal using localized compressive forces, such as hammering or pressing.

S Chart

A type of control chart used to monitor the variability within a sample, especially for processes that involve subgroups.

Three-Sigma Control Chart

A statistical tool used in quality control to monitor process variations, typically using a band of three standard deviations from the mean to identify outliers.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation means that the values tend to be close to the mean.