Three Processes Have the Following Costs: Process a Has a Fixed

question 7

Multiple Choice

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit.Process B fixed cost is $4,000 and variable cost is $2.60/unit.Process C fixed cost is $8,000 and variable cost is $2.40/unit.If the projected total demand is for 6,000 units, which process should be used?

• A)Job shop
• B)Batch process
• C)Repetitive process
• D)Continuous process

Analyze the effects of changes in the interest rates on savings and investments as per classical and Keynesian perspectives.

Understand the historical context and impact of the Great Depression on economic thought.

Evaluate the implications of Keynesian and classical theories on employment and price flexibility.

Understand the basic concepts of goal-setting theory and its characteristics.

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Definitions:

Consumer Surplus

A rephrased definition: The economic benefit that consumers receive when they can purchase a product for less than the maximum price they are willing to pay.

Consumer Surplus

The gap between the overall sum consumers are ready and able to spend on a product or service and what they really spend.

Cognitive Dissonance

A psychological discomfort experienced when simultaneously holding two or more conflicting beliefs, ideas, or values.

Self-Serving Bias

A common cognitive bias where individuals attribute their successes to internal factors while blaming external factors for their failures.