Answer the Following Questions Using the Information Below

question 75

Multiple Choice

Answer the following questions using the information below:
O'Grady's Cycle Repairs shop has a variable demand.Historically,its demand has ranged from 20 to 25 bicycle repairs per day with an average of 20.Evan,the mechanic,works eight hours a day,five days a week.Each order is one bicycle repair and each bicycle repair takes 20 minutes.
-What is the cycle time for an order?

• A)56.4 minutes per bicycle repair
• B)20 minutes per bicycle repair
• C)70 minutes per bicycle repair
• D)520 minutes per day

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Definitions:

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business or economy.

Short Run

A period of time during which at least one of a firm's inputs is fixed, affecting the firm's capacity to adjust to demand changes.

Short Run

The short run is a period in economics where at least one factor of production is fixed, limiting the adjustments a firm can make to its inputs.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the cost of producing one more unit of output.