What Is the Minimum Number of Clerks Needed to Keep

question 52

Multiple Choice

What is the minimum number of clerks needed to keep the average time in the system under 5 minutes?

• A)2
• B)3
• C)4
• D)5
• E)6

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Definitions:

Marginal Cost Curve

A graphical representation showing how the marginal cost changes with changes in production volume.

Average Variable Cost Curve

A graphical representation showing how the average variable cost (AVC) of production changes with the level of output.

Marginal Cost

The cost added by producing one extra item of a product, essentially the change in total cost that arises when the quantity produced changes by one unit.

Variable Cost

Costs that vary directly with the level of production output, such as raw materials and direct labor costs.