A Firm Pays Pam $40 Per Hour to Assemble Personal

question 106

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 the firm sells each computer for $625, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?

• A)1 hour
• B)2 hours
• C)3 hours
• D)4 hours

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Definitions:

Unstable External

Contexts or environments that are unpredictable and change frequently, affecting behavior or performance.

Stable External

Factors outside of an individual that are consistent and unchanging, often influencing behavior and perceptions.

Incremental

Describes a process of making changes or improvements in small, gradual steps rather than large, significant leaps.

Entity

Something that exists as a particular and discrete unit, often referred to in philosophy, law, and technology.