(Table) the Amount of Labor and Corresponding Output Are Provided

question 165

Multiple Choice

(Table) The amount of labor and corresponding output are provided in the table. The price per unit of output is $11.50. The wage paid per day is $115. Assuming labor is the only cost of production, the wages paid per day are $115. The economic profit earned by this profit-maximizing firm is
$\begin{array}{|c|c|}\hline \text { Labor } & \text { Output } \\\hline 0 & 0 \\\hline 1 & 7 \\\hline 2 & 19 \\\hline 3 & 34 \\\hline 4 & 47 \\\hline 5 & 57 \\\hline\end{array}$

• A) $80.50.
• B) $90.
• C) $110.50.
• D) $125.

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Definitions:

Standard Setting

The process of establishing benchmarks, norms, or levels of quality that products, services, or competencies should meet or exceed.

Work Sampling

A statistical technique used to estimate the proportion of time spent by workers on various activities, through random observations over a period.

Unavoidable Delays

Delays in a project or process that cannot be prevented, often caused by external factors like weather conditions, natural disasters, or changes in legislation.

Frank Gilbreth

Recognized as a pioneer in industrial engineering and management, Frank Gilbreth contributed significantly to time and motion studies, aiming to improve workplace efficiency and productivity.