A Firm That Produces Widgets Must Pay a Fixed Cost

question 42

Multiple Choice

A firm that produces widgets must pay a fixed cost of $150.It costs an additional $30 for every widget that they produce.If the market price is $40,how many widgets does the firm have to sell so that it does not incur a loss?

• A)1
• B)5
• C)10
• D)15

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Definitions:

Flow Time

The total amount of time a product spends moving through a production process, from start to finish.

Process Time

Process time refers to the duration required to complete a specific task or operation from start to finish in a production or manufacturing process.

Johnson's Rule

A scheduling technique used to minimize the total time required to complete a group of jobs on two machines or in two stages.

Optimal Sequence

The most efficient order or arrangement of steps or actions to achieve a specific goal.