Answer the Following Question(s)using the Information Below

question 123

Multiple Choice

Answer the following question(s) using the information below.A manufacturing firm is able to produce 2,000 pairs of shoes per hour, at maximum efficiency.There are three eight-hour shifts each day.Production is actually 1,600 pairs of shoes per hour due to unavoidable operating interruptions.The plant is expected to run every day but was only able to operate for 27 days in September.
-What is the practical capacity for the month of September?

• A)1,488,000 pairs of shoes
• B)1,440,000 pairs of shoes
• C)1,036,800 pairs of shoes
• D)1,296,000 pairs of shoes
• E)1,152,000 pairs of shoes

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Definitions:

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a product or service, emphasizing the concept of variable costing.

Resource Allocation

The process of allocating resources, including capital, labor, and materials, among competing uses or projects in an efficient manner.

Production Possibilities Curve

The Production Possibilities Curve (PPC) is a model that shows the various combinations of two goods or services that an economy can produce, given its resources and technology, illustrating the concept of opportunity cost.

Unemployment Rate

The percentage of the labor force unemployed at any time.