A Firm Pays Pam $40 Per Hour to Assemble Personal

question 46

Multiple Choice

A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If Jane works for 6 hours she can rent out 9 apartments, and if she works for 7 hours she can rent out 12 apartments. The marginal benefit of Jane's 7^th hour of work equals:

• A) 12 apartments
• B) 9 apartments
• C) 3 apartments
• D) 1 apartment

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Definitions:

Transportation

The process of moving goods, people, or animals from one location to another using various modes such as road, rail, air, or waterways.

Safety Inventory

A buffer of stock kept on hand to protect against variability in demand or supply, ensuring that a product remains available for customers despite uncertainties.

Low Demand

Refers to a situation where the market's desire for a product or service is lower than the supply.

Low Value Items

Products or materials that have a relatively low cost or worth compared to other items in an inventory or catalogue.