Table 13-3
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-As Bubba's Bubble Gum Company Adds Workers

question 257

Multiple Choice

Table 13-3
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$$\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Fixed Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & 0 & 50 & 0 & 50 \\\hline 1 & 90 & 50 & 20 & 70 \\\hline 2 & 170 & 50 & 40 & 90 \\\hline 3 & 230 & 50 & 60 & 110 \\\hline 4 & 240 & 50 & 80 & 130 \\\hline\end{array}$$ ​
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-As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters

• A)economies of scale.
• B)diseconomies of scale.
• C)increasing marginal product.
• D)diminishing marginal product.

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Definitions:

Denying Credit

The refusal to acknowledge someone's contribution or role in achieving something.

Employment Duration

The length of time an individual is employed in a specific job or with a particular company.

Softening Bad News

This involves delivering unfavorable information in a way that minimizes upset or harm, often by framing the message with positive or neutral statements.

Suggesting a Compromise

Offering a middle-ground solution in a dispute or disagreement that attempts to meet the needs or interests of all parties involved.