Suppose Larry's Lariats Produces Lassos in a Factory,and Uses Nine

question 10

Multiple Choice

Suppose Larry's Lariats produces lassos in a factory,and uses nine feet of rope to make each lasso.The rope is put into a machine that automatically cuts it to the right length,then seals the ends to prevent fraying.The rope is then hand tied,dipped,and wound before being placed in a packaging machine to prepare it for retail sale.If Larry were to decrease the production of lassos,which of the following is true regarding the company's costs?

• A) The variable costs of rope would drop to zero.
• B) The fixed cost of the rope cutting machine would stay the same.
• C) The fixed cost of the employee's wages would stay the same.
• D) None of these is true.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant or unchanging stimuli over time.

Absolute Thresholds

The minimum intensity of a stimulus that one can perceive at least 50% of the time.

Colour Hue

The quality of a color determined by its dominant wavelength, making it distinguishable as red, green, blue, etc.

Light Wave

An electromagnetic wave visible to the human eye, responsible for the perception of light and color.