This Phone Center Uses Only Equipment and Workers to Provide

question 11

Multiple Choice

This phone center uses only equipment and workers to provide service. $$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (units) }\end{array} & \text { Equipment } & \text { Workers } & \text { Total Cost } & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 0.5 & 1 & 2 & & & \\\hline 1 & 1 & 4 & & & \\\hline 3 & 1 & 6 & & & \\\hline 8 & 1 & 8 & & & \\\hline 11 & 1 & 10 & & & \\\hline 12 & 1 & 12 & & & \\\hline\end{array}$$
Relative to costs when equipment cost $10,if the price of equipment increased to $20 and nothing else changed,

• A) Total Cost would increase by $10 per unit of output.
• B) Marginal Cost would increase by $20 divided by units of output.
• C) Marginal Cost would not change.
• D) Average Total cost would increase by $10 at each level of output.

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Definitions:

Discrete Bits

Small, individually distinct units of information or data, often used in the context of digital communication or computing.

Fine Motor Skills

Involves the coordination of small muscles, usually involving the synchronization of hands and fingers, with the eyes for tasks such as writing, buttoning, and picking up small objects.

Writing a Letter

The process of composing a written message to communicate with someone, typically on a piece of paper sent by mail.

Running

A form of locomotion allowing humans and animals to move rapidly on foot, often utilized as a means of exercise or competition.