Answer the Following Question(s)using the Information Below

question 204

Multiple Choice

Answer the following question(s) using the information below:
The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand.The tool crib has a variable demand.Historically, its demand has ranged from 150 to 250 small tools per day with an average of 200.Diane, the tool crib attendant, works eight hours a day, five days a week.Each order is for one small tool and each small tool takes Diane 2 minutes to retrieve from the bins.
-What is the average waiting time, in minutes?

• A)2
• B)3
• C)5
• D)2.5
• E)7

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Definitions:

Upward Sloping

A line on a graph that shows an increase in a certain variable as another variable increases.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and therefore, should not be considered in making future economic decisions.

All-Day Ticket

A pass that allows unlimited use or access to a service, such as public transport or an event, for the entire day.

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one extra unit of a good or service.