A Goatherd Has the Cost Function C(y) = 4y2, Where

question 49

Multiple Choice

A goatherd has the cost function c(y) = 4y2, where y is the number of tubs of goat cheese she makes per month. She faces a competitive market for goat cheese,with a price of $40 a tub. How many tubs should she produce per month?

• A) The square root of 40
• B) 16
• C) 5
• D) The square root of 10
• E) 2.50

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Definitions:

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Statistical Methods

Techniques and principles for collecting, analyzing, interpreting, and presenting empirical data.

Systems Variation

The differences and changes within systems (e.g., organizational, biological, technological) that can affect outcomes and processes.

Continuous Quality Improvement

is an ongoing effort to enhance products, services, or processes by making incremental improvements over time or implementing significant changes to improve quality.