The Table Below Describes the Relationship Between the Number of Workers

question 87

Multiple Choice

The table below describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made) , and each worker is paid $10 per hour. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Calls Per } \\\text { Hour }\end{array} & \begin{array} { c } \text { Number of } \\\text { Telephones } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Number of } \\\text { Workers } \\\text { Per Hour }\end{array} \\\hline 1 & 1 & 2 \\\hline 2 & 1 & 4 \\\hline 6 & 1 & 6 \\\hline 16 & 1 & 8 \\\hline 22 & 1 & 10 \\\hline 24 & 1 & 12 \\\hline\end{array}$$ If the price of a telephone increases to from $5 to $10 an hour and nothing else changes, then:

• A)total cost would not change.
• B)marginal cost would increase by $5 at every level of output.
• C)marginal cost would not change.
• D)average total cost would increase by $5 at every level of output.

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Definitions:

Fixed And Variable Cost

Fixed and Variable Cost are two types of costs incurred by businesses; fixed costs do not change with the level of production or service, while variable costs vary directly with the level of production or service.

Planning Budget

A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.

Oil Well Service Company

A business that provides a variety of services to the oil industry, including drilling, maintenance, and repair of oil wells.

Planning Budget

A budget created for a specific level of activity, used as a tool for decision-making and financial planning.