This Phone Center Uses Only Equipment and Workers to Provide

question 80

Multiple Choice

This phone center uses only equipment and workers to provide service. $$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (units) }\end{array} & \text { Equipment } & \text { Workers } & \text { Total Cost } & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 0.5 & 1 & 2 & & & \\\hline 1 & 1 & 4 & & & \\\hline 3 & 1 & 6 & & & \\\hline 8 & 1 & 8 & & & \\\hline 11 & 1 & 10 & & & \\\hline 12 & 1 & 12 & & & \\\hline\end{array}$$
Assuming equipment costs $10 per unit and each worker earns $5,Average Variable Costs are minimized when output is approximately

• A) 3 units.
• B) 8 units.
• C) 11 units.
• D) 12 units.

Apply knowledge of data types and sources to evaluate business performance and decision-making.

Grasp the concept of extracting meaningful information from data.

Understand the role of different outcomes (customer-focused, workforce-focused, financial and market, leadership and governance) in assessing organizational effectiveness.

Recognize the importance of time series and cross-sectional data in analysis.

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Definitions:

General Partnership

A business arrangement where two or more individuals agree to share all assets, profits, financial, and legal liabilities of a jointly-owned business.

Legal Entities

Organizations that have legal rights and obligations, including the ability to enter into contracts and own assets.

Separate Accounting Entity

A fundamental accounting principle that treats a company's financial reports as distinct from those of its owners or other businesses.

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.