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:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, indicating the sensory system's sensitivity.

Need for Touch

An individual's preference for tactile input and physical contact in the process of evaluating and purchasing products.

Branding

The process of creating a unique name, design, and image for a product or service, making it distinguishable from others in the market.

Packaging

The process or materials used to protect, contain, identify, and provide information about a product.