"Group Technology" Can Be Used to Reduce Setup Cost and Time

question 40

True/False

"Group technology" can be used to reduce setup cost and time in a JIT conversion.

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Definitions:

Short Run

A period in which at least one input in the production process is fixed and cannot be varied to influence output.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as output increases.

Total Product

The total quantity of output produced by a firm during a given time period with a given amount of inputs.