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A Firm Employs Pam to Assemble Personal Computers

question 126

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A firm employs Pam to assemble personal computers. Pam can assemble 1 computer if she works 1 hour, 4 computers in 2 hours, 8 computers in 3 hours, 10 computers in 4 hours, and 11 computers in 5 hours. Each computer consists of a motherboard that costs $200, a hard drive that costs $100, a case that costs $20, a monitor that costs $200, a keyboard that costs $60 and a mouse that costs $20. The cost of employing Pam is $40 per hour. What is the marginal cost of producing the computers Pam assembles during her 4th hour of work?


Definitions:

Individual Differences

Variations among people in their qualities, abilities, and characteristics.

Mature Groups

Teams or groups that have developed advanced levels of communication, structures, and processes to achieve high performance.

Groupthink

Within a team, the psychological inclination towards agreement or uniformity fosters a scenario where irrational or suboptimal decisions are made.

Group Development

The process through which a group evolves over time, typically moving through stages of forming, storming, norming, performing, and adjourning.

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