Suppose That You Can Schedule a Worker for Up to 4

question 45

Multiple Choice

Suppose that you can schedule a worker for up to 4 hours per day.The total benefit and total cost functions are B(H) = 1,300H - 20H² and C(H) = 500H + 60H².The corresponding formulas for marginal benefit and marginal cost are MB(H) = 1,300 - 40H and MC(H) = 500 + 120H.For how many hours should you schedule the worker?

• A) 11.25 hours
• B) 2.5 hours
• C) 5 hours
• D) 0 hours

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Definitions:

Per Hour

A rate or measurement that denotes something occurring or calculated over the course of an hour.

Material Variance

The difference between the actual cost of materials used in production and the standard cost expected.

Favourable Variances

Differences between actual and budgeted performance that result in better than expected financial outcomes.

Raw Material

The basic materials from which products are manufactured or made.